From Russia With Love to Marbella

From Russia With Love to Marbella.  From 2010 to 2014 Spain and Marbella enjoyed a growing relationship with Russian and Russian-speaking tourists and investors. Russians have flocked to other European countries as well, but the charm of Spain, and its warm, Mediterranean lifestyle has a special attraction for those who live in the most northerly parts of Europe.

According to a recent article by Marina Nitzak, president of Marbella’s Russian social club and networking portal – Luks Marbella, the media loves the Russians, especially tales of excessive behaviour, such as splashing champagne, shopping in the top boutiques of Puerto Banús with 500€ notes and details of investments in property that are accompanied by images of extraordinary mansions, private yachts and extravagant parties, typically featuring one of Russia’s most luxurious exports – caviar.

For Spanish businesses of all sizes, the arrival of high net worth Russian visitors in Marbella seemed like a glimmer of hope at the height of the recession. The announcement by the Spanish government of ‘golden visas’ that would enable Russian investors to stay in Spain beyond the usual visa limits, sparked the founding of specialised businesses. These were aimed at helping big-spending Russian property owners to furnish their homes and deal with bureaucracy. Marketing in the Russian language also went through a notable upturn, and diplomatic relations between Spain and Russia were flourishing.

However, the onset of the conflict between Russia and the Ukraine radically altered the situation. UN sanctions affected the economy and the rouble fell to half its value against the euro. Then the Russian government imposed exchange control and limits on taking money out of Russia. The Crimea and Sochi were promoted as alternative holiday destinations, and as a result the number of Russian tourists coming to Spain fell by 32% in 2014.

However, things are changing. In the first few months of 2015 there has been a marked return of high net worth Russian investors to exclusive Marbella. In April, the rouble returned to a more advantageous exchange rate against the euro, plus diplomatic relations have thawed thanks to Spain’s ambassador in Russia, José Ignacio Carbajal Garate, who has called for a reduction in the sanctions against the country.

Local businesses that provide support services to the Russian community are once again emerging, while Nevado Realty, one of the foremost real estate in Marbella, sees a good future for the Russian romance with Spain and with our city. With this in mind, Marbella is glad to see its Russian community grow once more.

The original article by Luks Marbella