Where the more liquid securities markets lead, real estate is never far behind. As the west responded to the invasion of Ukraine with rolling sanctions directed at Russia’s economy, politicians, and oligarchs, attention has turned to the knock-on effect for one of the UK economy’s most high-profile contact points with Russia: property.
Judging by the stock market reaction in the days since the latest escalation began, some investors are concerned that freezing orders could dampen business at the top of the market.
High-end estate agents Savills (SVS), which has a small Russian desk in London, is off more than 6 per cent in the past week, while developer Berkeley Group (BKG) – known for its focus on luxury residential property in the capital – has shed 5 per cent. Berkeley, which makes a significant portion of its sales to international investors and individuals, has also targeted Russian buyers.