"Londongrad" no longer puts on the ritz
Abramovich's girlfriend Darya Zhukova hasn't been seen at Harrods since the financial crisis began.
The legendary firm Sotherby's showed record losses late last week. At a recent art auction, paintings sold for twice less than initially expected. Buyers ended up paying 22 million pounds for paintings worth an estimated 75 million. Experts explained the travesty by the fact that several wealthy Russians opted against participating.
Sotherby's isn't the only company to feel the heat as Russia's rich struggle through the financial crisis. A high-profile event was canceled at the fashionable Ritz Hotel last week with only two days notice. Over 300 guests, including actors and models, had been invited. What happened? one might ask.
I heard at the Ritz that Aleksandr Gaydamak was supposed to pay for the event, but the 32-year-old owner of the UK football club Portsmouth backed out at the last minute. It looks like Londongrad, as London is often referred to now that so many Russian rich have flocked to the European capital, is no longer putting on the ritz. But maybe the UK's real estate market is doing going a bit better?
No money for repairs
When I asked real estate agent James Gallagher at the British Bruten company about the state of affairs on the market, he suggested that we take a ride down to Highgate. Here, one can find the most fantastic villas, carefully cut emerald green lawns, serene ponds and mammoth white columns.
"Look over there," Gallagher said. "Besides Buckingham Palace, this is the biggest home in London. There are 90 rooms, and 25 bedrooms. But who's the owner? It's a mystery. I've heard different stories — Baturina, Derpaska... But the owner is certainly Russian."
The real estate agent said the villa was bought in the summer for a whopping 50 million pounds. The owner paid for more than mere luxury. There's also a fair deal of prestige in this home's history. The cream of British society gathered at the villa in the 19th Century. Even Elizabeth II played tennis here.
Today, the building stands in half-ruins. The roof is leaking and the cornices are cracked. The wooden floor and wall panels also need to be replaced. The repairs will cost an estimated 80 million pounds — more than the price of the house itself.
"But the point is they aren't doing any repairs," Gallagher said. "It looks like things have gotten a bit tougher money-wise for you all, too."
Later, we headed out to Mayfair. There are many homes in the area that belong to rich Russians. We stopped our car on Carlos St. near a three-story brick building.
"A real battle-for-Waterloo was going on here not too long ago," he said laughing. "But only Russians were fighting. There were four potential buyers. I don't have the right to name names, but they are all very famous people. Now no one's interested in the home."
Gallagher opened the doors and we walked inside. On the first floor is a room with a gigantic screen surrounded by leather sofas and chairs. On the second floor is a guest room and four other rooms outfitted with the finest furniture, carpets and fireplaces. Paintings hang on all the walls. The third floor houses the master bedchamber with a view of all of London.
"How much does this building cost?" I asked straightforwardly.
"In the summer, the building was valued at 21 million pounds," he said. "Now the price is somewhere around 17 million. But it's unlikely the building will even go for that much, as buyers don't have enough free funds."
It's much more boring nowadays
Not only the UK's real estate agencies are longing for the days of Abramovich and crew. Even Harrods, where several wealthy Russians were spotted time and again this year — the likes of Darya Zhukova, Polina Deripaska and Boris Berezovskiy... Now they're nowhere to be found. Generally speaking, there are much fewer Russian buyers around London. Christmas shopping this year is expected to dive by at least 30 percent.
In terms of the younger members of the Russian Diaspora abroad... Many well-to-do Russians paid for their children's yearly tuition at private British schools ahead of time, and the financial crisis isn't weighing too heavy on their shoulders in this regard. But those who only paid for the current semester will be taking their kids out of school in the coming months. Hundreds will head back to Moscow and Saint Petersburg until the crisis sets itself straight.
Читать русскую версию: «Лондонград» больше не шикует