The collapse of the Russian ruble has resulted in an increase in Russian investment in New York real estate, according to a recent news report. Russians have been buying up high-end apartments in the city for years, of course, as a cushion against economic instability at home. The ruble has lost half its value over the past year, and sustained a drop in value of 19 percent earlier this month. The currency collapse, caused in part by economic sanctions and falling oil prices, may be fueling an upsurge in foreign real estate purchases.
The purchasing of luxury apartments by wealthy foreign investors does not always go over well with New York residents. There was some controversy a few years ago when a Russian billionaire bought a penthouse on Central Park West for $88 million.
Many New Yorkers are concerned that out-of-town buyers are driving up residential property prices for locals. But as long as U.S. real estate is seen as a safe haven from a volatile economic situation in Russia, the purchases seem likely to continue.
The purchase or sale of a luxury apartment in Manhattan is a major transaction. Like any major real estate deal, having experienced legal counsel can help a party avoid unseen pitfalls and potential litigation. A knowledgeable law firm can help negotiate the agreement, review any title issues and draft deeds and financing documents. After the deal is done, if the purchaser chooses to rent out the property, attorneys can help negotiate lease agreements and assist with any tenant issues including nuisance and lease violation cases.
Source: Bloomberg Businessweek, “Ahead of Ruble Collapse, Russian Elite Stashed Money in Foreign Real Estate,” Patrick Clark, Dec. 17, 2014