Apart from the Physical and Structural destruction, The Russia- Ukraine crisis may affect the Global Real estate Field. The experts argue that at this rate, and if the world powers were to impose sanctions on Russia. It would significantly impact the Global Economy and that includes the Real estate sector too.
If this leaves you wondering what went down, or why it escalated to war so quickly, you’re not alone. Many people had no idea what was going on until it hit their news feeds and social media.
The crisis in Crimea began on February 27, 2014, when pro-Russian citizens took over key facilities and buildings in Crimea. They refused to recognize Ukrainian authority and instead acknowledged Russia’s leadership. Russian troops occupied military bases across Crimea, including airports and government buildings.
On March 6, a referendum was held by pro-Russian citizens of Crimea asking whether they wanted to rejoin Russia or become an independent state. The final tally showed 96 percent of voters supported rejoining Russia. In response, the U.S., European Union (EU), and other countries all announced sanctions against members of Vladimir Putin’s administration as well as limited their foreign aid to Russia with sanctions on Russian oil companies that have close ties with leaders in Moscow.
Russia argued that it had every right to protect ethnic Russians living within its borders. Moreover, Russia said it had no desire to threaten or destabilize Ukraine. In September 2014, Russia annexed Crimea, a peninsula on Ukraine’s southern coast. In March, pro-Russian separatists in Eastern Ukraine seized several towns from Ukrainian control.
The Ukrainian war continued until late 2015 when peace talks between Putin and Poroshenko finally began to make progress toward solving these long standing issues. Ukraine has been an independent country since the end of the Cold War, but it doesn’t have full control over its territory.
Russian separatists hold parts of the East and South, while Crimea was annexed by the Russian Federation in 2014. There’s no doubt that Putin supports these groups—and he probably encouraged them to start their protests in Kyiv—but whether he gave direct orders to intervene is unclear.
Many speculate that the Ukraine crisis would have never happened if not for US meddling.
On the 24th of February, Russia had its military troops invade Ukraine. The Russian government decided to annex Crimea, but the Ukrainian forces resisted the Russian military troops.
In just a matter of days, The Global economy has not been looking good and there is an unexpected, powerful financial sanction breaking down the Russian economy, which on top of that is threatening to fuel worldwide inflation.
There was a trading loss of up to 4% in all the sectoral indices, even in metal stocks trading and telecom, IT, realty, and auto.
Banks are trying to figure out how much they are going to lose if the Russian economy collapses.
The Ukrainian crisis has also impacted the real estate market in Ukraine. The war has caused many people to leave their homes and move elsewhere, which means that there are more properties available for sale than there were before. This is some news for those who are looking to buy property in Ukraine as it means that they will be able to get a better deal on their purchase.
Considering The situation at present, if things keep going on this way, it will not augur well for the Real sector, let alone any sector.
After the Pandemic, when we were just about to breathe a sigh of relief, Russia decides to invade Ukraine, causing chaos in the world again. We are on the verge of a war, which could bring destruction to every sector including Real Estate.
What are we to expect next? A zombie attack, an Alien invasion perhaps? Anyhow, This Russia Ukraine has got the Realtors pacing up and down as the impact would be felt on both sides of the demand and supply of Real estate.