Residential developers have been relying on foreign investor to purchase a significant number of the new projects planned for South Florida.

Two weeks ago, the Euro experienced a crash and it was just announced that the Ruble has been downgraded 41%, according to a report by Bloomberg.

This credit downgrade reduces access to capital for Russians in the international market. It has lost 46 percent of its value against the U.S. dollar in the last year due to oil prices and the Crimean war sanctions.

It is anticipated that Russia will face difficult times for the near future with expected growth at only about 0.5 percent annually. Concerns already exist regarding Russian investors continued patronage of South Florida, and the question moving forward is whether investors will still have interest and buying power to support preconstruction. Check in for continued covereage!