[LINK] "Belgravia Mansion Sales Slump as Russians Vanish From London"

[rfmcdonald]

Bloomberg's Neil Callanan describes the collapse in the purchase of mansions in London by wealthy Russians.

Home sales in Belgravia, the London district favored by Russian oligarchs for its large Regency-style houses, are slumping after the collapse of the ruble against the pound.

Transactions dropped 25 percent in the neighborhood in the 10 months through October from a year earlier, compared with a decline of almost 20 percent in the rest of central London’s best districts, according to researcher Lonres. The ruble has fallen 26 percent in the past year against the U.K. currency amid international sanctions over Ukraine and the collapse of oil prices.

“The share of Russian buyers in the prime central London market is down due largely to the currency weakness and difficulty in getting money out of the country,” said Charles McDowell, who advises wealthy clients on buying luxury homes in London. “This has affected Belgravia and Knightsbridge in particular, which is very much the Russian heartland.”