Investments in commercial real estate in Russia reached a record
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Loading... - Margaret Miller
- 15 Jul 2022
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At the end of the first half of 2022, the volume of investments in commercial real estate in Russia increased by 42% compared to the same period last year, to RUB 179.8 billion. This indicator has become a record and exceeds all semi-annual investment volumes of previous years since 2015. This was reported to RBC-Real Estate by analysts from the consulting company Knight Frank.
The company noted that, despite the general geopolitical situation and the pressure exerted on the Russian economy, investment activity in the market remains high. But the share of foreign capital was only 1.6%, at least the next few years, the figure is expected to remain at the same low level. Despite new opportunities for investors from Asia and other countries, the Russian market remains extremely risky for them in the current environment, which will hinder the inflow of investments from these areas, analysts said.
Against the backdrop of the departure of foreign brands and companies from the Russian market, there is an increase in the number of transactions for the purchase of businesses of departing companies, analysts say. Sometimes such transactions include real estate. Among the examples in Knight Frank are the sale of the Russian assets of the Finnish manufacturer Fazer (operating factories in the BKH Kolomensky), the sale of the business of Carlsberg, Valio, Paulig, Wimm-Bill-Dann, Pizza Hut and other brands.
In which segments did the investments come?
In terms of the amount of invested funds, the leadership in the investment structure, according to Knight Frank, remained with development sites, although their share decreased to 47% against 56% a year earlier. In absolute terms, investments increased - 83.9 billion rubles. against 71.3 billion rubles. a year earlier.
In second place was office real estate. In January-June, it received three times more investments than a year earlier (49.2 billion rubles, share - 27%). Third place is occupied by retail real estate with a share of 11% and a total investment of 19 billion rubles, according to the study.
“The strong result of the first half of 2022 allows us to make a forecast that by the end of the year the total volume of investments will be significant and possibly exceed previous periods, however, the long-term development of real estate markets is still uncertain,” says Managing Partner Knight Frank Russia & CIS Alexey Novikov. Read More…
