Russia's rich flee crisis to buy up property

A neon sign displays the latest Russian ruble euro dollar exchange rate outside a currency exchange bureau in Moscow, Russia. Photo / Getty Images

The financial crisis in Russia has wiped billions off the fortunes of some of Britain's wealthiest tycoons and has led to a spate of property panic buying across London.

Russia's 20 richest people lost more than 6 billion ($12.12 billion) this week after the ruble crashed and the country's stock market fell to its lowest point since 2009. And British-based oligarchs have also seen their fortunes plummet in recent months, according to financial analysts.

The collapsing Russian economy combined with plunging oil prices has caused panic among many expats in London, some turning to the ever-buoyant British property market to shore up their investments.

Other Moscow-based billionaires have relocated to Britain to escape the crisis. High-end estate agents report being inundated with wealthy Russians seeking some of the capital's most exclusive addresses.

Beauchamp Estates reported up to a 10 per cent rise in sales of high-end London homes to Russians since the ruble began its slide a year ago.

"I currently have half a dozen Russian clients urgently looking to spend over 20 million each on buying a new home in central London. For them the address must be Belgravia, Knightsbridge, Mayfair or Regent's Park," said Gary Beauchamp.

Becky Fatemi, managing director of Rokstone estate agents, said the number of Russian clients on her books had doubled this year.

"There has been a big upturn in Russian buyers since the collapse of the ruble and the slowdown in the Russian economy due to international sanctions.

The Christmas season has not stopped them. Currently, I have several Russian clients looking to spend up to 100 million on a home in London."

Russian magnates are also leading the charge to snap up castles from hard-up Italian aristocrats. Across Italy, 70 privately owned castles and palaces, many in old Italian families for generations, are on the market, amid stories of Italian nobility selling off paintings to pay the bills.

According to the Florence-based Lionard Luxury Real Estate, Italy's nobles are setting their sights on super-rich foreign buyers, with 80 per cent of interest coming from Russian clients. The latest landmark to fall into foreign hands is the Castello di Tavolese. It was sold for between 10 million and 20 million.

In October, it emerged that a Russian buyer had bought one of the most glamorous villas on the Tuscan coast for 6 million.

- Telegraph Group Ltd, Independent