This is an all time record in the history of the Russian real estate
According to the new research, the investment volume in 2016 amounted to $4.5 bn (or RUB315 bn), being 37% higher than the same period of 2015 in dollar terms. About 34% of this amount (1/3) was driven by the government sector deals, while there were no such deals in 2015.
The expected investment volume into Russian real estate is expected to be at $5 bn in 2017.
Irina Ushakova, Senior Director, Head of Capital Markets Department, CBRE in Russia, commented:
“The investment volume in 2016 amounted to $4.5 bn (or RUB315 bn), being 37% higher than the same period of 2015 in dollar terms. About 34% of this amount was driven by the government sector deals, while there were no such deals in 2015. High investor activity of last year was inefficient because of significant mismatch between buyer and seller expectations that prevented deal closure. As a result, the volume of real market deals was down by 10% compared to 2015, and amounted to almost USD3bn. We expect more stability and gradual economic and real estate market recovery this year, which together with pent up demand allows us to forecast investment volume to be at about $5 bn in 2017.”