The billionaire buyers are flush with cash from the privatization of Russian state industries and from high prices on oil and other commodities, and are eager to park much of their fortunes outside the reach of the government of Vladimir V. Putin.
The real estate market in the United States may still be slumping, but its high end is enjoying a remarkable updraft, propelled by money flowing in from all corners of the globe, including from developing countries like Brazil, China and India. But no group is consistently writing bigger checks than the Russians. Over the past four years, Russians and other citizens of the former Soviet Union have signed contracts to buy more than $1 billion worth of residential real estate in the United States, according to estimates from lawyers and brokers. The spending spree may just be warming up, given that $84 billion left Russia last year, with the Russian government estimating that up to 5 percent of that capital flight was being plowed into American real estate. The number of billionaires in Russia and Ukraine has more than tripled since 2009, to 104, according to Forbes.
By Alexei Barrioneuvo, April 3, 12 NYT
Aspen example: Roman Abramovich’s Snowmass Village ‘Wildcat Ridge’ Purchase for $36.5MM in April 2008
The Estin Report: Aspen Stats and Facts – Billionaires surging?
Photos courtesy of BJ Adams & Co Snowmass