War in Ukraine: small impact on French luxury real estate

The days when the Russian oligarchs prospected the Foch/Montaigne area in Paris, Chamonix, Courchevel and Megève in the mountains and the three “capes” of the Côte d’Azur are over. "There was a kind of implicit competition between them: it was who would have the most beautiful property, the most prestigious address or the best location at the foot of the slopes or the waterfront" explains Alexander Kraft, CEO of Sotheby's International Realty France-Monaco.

Indeed, since the annexation of Crimea in 2014 which led to sanctions against Moscow, at the same time when the Russian government put in place controls on assets and funds invested abroad, Russians have deserted the luxury real estate market. The war in Ukraine and the announced freezing of assets held by the oligarchs in France will thus have little impact on this market. The few buyers have completely disappeared with the pandemic, giving way to French people returning from abroad, Lebanese, Europeans and North Americans.

Click here to read the full article.