Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Commercial Real Estate Investments Could Reach $8Bln This Year

The White Square business center at Belorusskaya. Maxim Stulov

Commercial real estate in Russia will attract $8 billion in investments this year, $800 million less than in 2012, estate agents said Monday.

Between January and September 2013 investors plunged $5.3 billion into office buildings, warehouses, shopping centers and hospitality properties in Russia, Vedomosti reported.

"Our end of year forecast is $8 billion," estate agents from Colliers International and Cushman & Wakefield said.

CBRE specialists, however, are not so optimistic, saying that investors will only find enough properties for a layout of $6 billion this year.

Last year's record of $8.8 billion will not be reached, said Olesya Dzyuba, deputy head of research at Jones Lang LaSalle, adding that 80 percent of commercial real estate investments in Russia this year will go toward properties in Moscow.

"Investment growth has stopped. Next year we expect it to be even less — $7.8 billion," said Denis Sokolov, head of research at Cushman & Wakefield said. The market "has reached saturation point, and income levels from commercial properties are becoming lower," he added.

Jones Lang LaSalle rated Moscow the seventh most interesting place in the world for investors, after London, New York, Paris, Los Angeles, Washington D.C. and Shanghai.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more