The Real Deal Miami

Collapse of ruble drives Russian buyers to Miami suburbs

Combined wealth of Russia’s 20 richest has shrunk by $10B
January 14, 2015 03:00PM

Map of Miami suburbs

Map of Miami suburbs

Right before the holidays, New York-based attorney Marlen Kruzhkov started noticing a handful of Russian property buyers wanting to flip closed real estate contracts — and all of the apartments were based in the Miami area.   

The property values all ranged from $5 to $12 million and were purchased before the December collapse of the ruble, which, the New York Observer reports, shrunk the combined wealth of Russia’s 20 richest men by $10 billion almost overnight.

“They were offering to sell the contract at a loss, willing to take a fifty percent loss on a down payment as not to take a hundred percent loss. Due to the exchange rate, they did not have the liquidity to finish the transaction,” Kruzhkov told the Observer. “An apartment in Miami, even the most glorious beachfront apartment, is not a priority right now.”

Kruzhkov went on to explain that as a result of their economic troubles, Russian buyers are now looking past South Beach and considering less expensive apartments in the Miami suburbs where they can rent out properties more easily. [New York Observer] Kristina Puga