Coronavirus and Its Impact on Overseas Real Estate: the Russian Showbiz Stars Suffer Serious Losses

Coronavirus and Its Impact on Overseas Real Estate: the Russian Showbiz Stars Suffer Serious Losses

25.04.2020 15:00

Raging around the world pandemic has significantly reduced the prices for luxury real estate. Russian celebrities have to pay taxes and bills for housing services while there are simply no buyers at all. It is worth considering the lack of any income they can earn now. Nevertheless, the maintaining expenses for their overseas property remained the same.

Many Russian showbiz stars have long acquired luxury square meters in Miami. Philipp Kirkorov has a solid mansion with 7 bedrooms. The annual real estate tax is about $ 100 thousand (2% of the market value). Just a year ago, the property of one of the most prominent representatives of the Russian pop scene was estimated at about $ 4.6 million. But COVID-19 made serious adjustments to this figure - today the singer’s apartments have fallen in price by almost $ 2 million. His property in Bulgaria and other countries has dropped in price either.

Valery Leontiev owns a two-storey house with a plot of land in Miami. A luxury villa with adjoining territory and all amenities costs approximately $ 3.3 million, and an annual tax deduction comes to approximately $ 70 thousand.

Igor Nikolaev also managed to buy an apartment in Miami in a house overlooking the ocean. A few years ago, the property was worth more than $ 1 million. Before the global crisis began, the price was a slightly lower than $ 790 thousand. In current realities, the cost of an apartment continues to fall. At the same time, housing maintenance doesn’t come cheap; only the tax is about $ 16 thousand per year.

Realtors from the United States report a significant drop in housing prices and a decrease in the number of transactions. Even if the situation with coronavirus will be stabilized in the States, one should not expect any market easing in the near future. Owners of luxury houses and apartments will be forced to sell them cheaply or continue bearing maintenance expenses.

According to the famous promoter Sergei Lavrov, most celebrities bought overseas real estate at a time when a house in Rublyovka was more expensive than a mansion in Switzerland. It is rather expensive to maintain property abroad, there are no concert shows now, and there is no stable income. Yet through it all, one has to pay a tax annually, because otherwise your property may be seized.

Angelica Varum and Leonid Agutin are the owners of apartment in the premium Tramp Towers complex located on the Sunny Isles Beach. Among the amenities - a private beach, swimming pool, SPA and fitness center, security service. Not so long ago, an apartment was estimated at about $ 750 thousand. Today, the price has dropped by at least $ 300 thousand, public utilities do not come cheap.

Igor Krutoy owns an apartment in a house by the ocean on the Fisher Island - so-called harbor of millionaires. You can get there only by invitation of one of the locals and only aboard a ferry.  In pre-crisis times, real estate there cost about $ 1.3 million, and annual contributions to the US budget came to $ 27 thousand.

Valeria and Iosif Prigozhin are facing a similar problem. They did not often use their apartment in London, mostly they rented it out. Luxury housing in current conditions is almost not in demand. Taxes and utility expenses must be paid regularly. Plus, a house located in the coastal area in Switzerland has added even more problems. Urgent repairs after the destruction of the embankment cost the couple 50 thousand euros.

Kristina Orbakaite has a three-room apartment in one of the most luxury areas of Miami. The popular shopping center Bal Harbor is located nearby. The apartment is valued at $ 2.6 million, and the annual tax - $ 53 thousand.

Based on materials: Cosmo