Savills Magazine, Issue 61, 2008

Overseas Desksby Tatiana Baker, Head of the Russian Desk

Russian buyers tend to favour apartments in prime Central London or large homes in Hampstead

Tatiana Baker explains what kind of properties appeal to Russian buyers

Seamless links between Savills and its global affiliates mean that UK properties can be marketed directly to lists of interested parties in Eastern Europe, South Asia, Southern Africa and Hong Kong

With a busy office in Moscow, IntermarkSavills markets properties to potential Russian buyers before they even set foot in the UK

“There is no shortage of Russian clients ready to buy
now, but there is a shortage of top property” Tatiana Baker

Expert overview

Savills recently sold a house in Belgravia to a Russian buyer for £27 million – and I have plenty more potential clients for top-end properties on my books. Typically, these are cash buyers, wealthy business people, so sales are usually quick and straightforward. However, while there is no shortage of Russian clients ready to buy right away, there is always a shortage of top property.

What kinds of properties attract Russian buyers? Firstly, presentation is hugely important. They prefer to see apartments and houses that are immaculate so they don’t have to organise refurbishments. Some even prefer furnished properties and it’s not a bad idea to leave the table set for dinner. Please don’t think Russians want gold paint. That’s considered to be tasteless.

With apartments, Russians typically look for high ceilings, a large kitchen where they can cook and eat, lots of floorspace – the kind of elegant period property you might find in St Petersburg. Other Russians like new developments, but these should be centrally located, in Knightsbridge, Belgravia, Kensington, Chelsea or Mayfair, and preferably be on a long lease. New developments such as The Knightsbridge, Lancelot Place and The Phillimores are popular. Russians like a concierge and a parking space. They want good security too, especially because many won’t live in an apartment full-time.

Whatever kind of property they want, Russians need to know what’s on the market. That’s where my colleagues at our Moscow office, IntermarkSavills, come in. They are in regular contact with potential buyers, so before clients even visit London we often know what kind of property they’re interested in. Regular contact is particularly important because Russians can be demanding clients. Somebody will call and say, ‘I want to see a property tomorrow and I’m only in London for the weekend.’ If I can arrange to show them something, I will be there. I work when things need to be done and I also work hard on building up trust. That pays off because if Russians think you’re an honest, discreet agent, they will recommend you.

With Russians, sometimes they can walk into a property and walk out straight away if they don’t like something. It can be embarrassing because an English person would try not to let their feelings show. Russians are more straightforward, but that’s what I like about them. I’ve lived in London since 1998, but I’m Russian too and I’d rather know what’s going on straight away than wait to find out.

When it comes to houses, Russians usually prefer the kind of properties you find on The Bishops Avenue in Hampstead, mansion-style homes set in their own land rather than townhouses spread over four or five floors. Outside London, my clients look for houses that remind me in some ways of the luxury dachas you find outside Moscow. For example, they like St George’s Hill in Weybridge. It’s within 60 minutes of London, but there’s security, privacy and land.

With somewhere like St George’s Hill, we often take a little time to show the client around the area because they won’t necessarily know much about it. We show them the schools, the polo club, the golf club, whatever they’re interested in. Cobham, Esher, Oxshot, Sunningdale, Windlesham, Ascot and Wentworth are also popular. Families often want to be close to international schools and we’re asked about access to private airfields.

I think I’m going to be busy this year. One reason why Russians buy property in the UK is because they think that it’s secure and stable here.

Savills has a range of overseas desks, based in the UK and Asia

Global desks

Southern Africa desk (based in London). Savills has a formal partnership agreement with Pam Golding Properties, Southern Africa’s leading independent real estate company. Simon Gibb heads up the Southern Africa desk at Savills’ head office in Lansdowne House. “The market is typically for residential up to £300,000,” says Gibb. “South Africa offers one of the most diverse, exquisite and favoured property investment portfolios in the world. The Rand’s current exhange rate cycle means you can acquire a substantial investment for far less than you may have realised. It is the land of opportunity; and you could own an irresistible part of it.”

Contact: Simon Gibb
+44 (0)20 7016 3895

South Asia desk (based in London). Increasingly, South Asian buyers are buying property in Central London’s most desirable areas. “Our buyers vary from business tycoons to celebrities,” says Sheetel Halai, Head of Savills South Asia Desk. In 2007, 11 per cent of Central London property deals above £4 million involved South Asian buyers. In 2006, the figure was so low that South Asian buyers weren’t even separately counted.

There’s now a steady demand for luxury apartments, often in new developments such as One Hyde Park or The Knightsbridge, but South Asians also value traditional houses. “I’ve had specific requirements for a Victorian or an Edwardian building,” says Halai.

Contact: Sheetel Halai
+44 (0)20 7016 3897

Hong Kong desk Savills operates a London residential desk based in Hong Kong. The role is to secure new business for residential departments via the referral of Hong Kong contacts with property assets in London and the UK.

Contact: Tina Ting
+852 2842 4438