As I mentioned in last week’s email, Russian oligarchs and their families have been under the microscope given Russia’s invasion of Ukraine. As the war is still in motion and is intensifying day by day, US sanctions are being placed on Russian oligarchs over alleged ties to the Kremlin. This, in turn, has pushed them into selling their NYC properties ahead of further possible sanctions.
It appears they are looking to privately sell off their ultra-luxury properties through “whisper listings” in a desperate attempt to liquidate assets. One NYC real estate agent reportedly has had Russian clients looking to potentially list between 50-70 properties, primarily in Manhattan, within the past week.
Although these luxury properties list anywhere from $5M to $50M, they could very well be significantly discounted depending on how quickly Russian sellers need/want to get out. It seems many have not yet pulled the trigger to sell, but are taking steps and precautions ahead of what could be more sanctions. Given the potential influx of listings—some at discounted asking prices—that result from this, it could impact the luxury market.
Increased demand for these discounted luxury properties could lead to bidding wars. And for any interested buyers who do find themselves in a bidding war, keep in mind “all-cash buyers” have the advantage according to a recent Redfin report.
As things overseas remain tumultuous, our financial markets continue to be volatile. There are many factors that can come into play, possibly having an effect on real estate transactions. To this end, please don’t hesitate to reach out with any questions if you’re looking to sell or buy. As we’ve seen in the past, things can change on a dime so it is best to be well-informed at all times.