Third of the total investment volume in Russian real estate driven by government sector in 2016 – EuropaProperty

CBRE in Russia has released the Russia Property Investment MarketView for 2016. According to the new research, investment volume in 2016 amounted to $4.5 billion (or RUB315 billion), 37 percent higher than the same period of 2015 in dollar terms. And about 34 percent of this amount (1/3) was driven by government sector deals, while there were no such deals in 2015. The expected investment volume into Russian real estate for 2017 is expected to be at $5 billion.

Irina Ushakova, Senior Director, Head of Capital Markets Department, CBRE in Russia, commented: “The investment volume in 2016 amounted to $4.5 billion (or RUB315 billion), being 37 percent higher than the same period of 2015 in dollar terms. About 34 percent 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 percent compared to 2015, and amounted to almost USD3 billion. 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 billion in 2017.”