Commercial real estate market lost over 1 bln euro of foreign investment since 2017 – Business & Economy

Shaniqua Juliano

MOSCOW, October 5. / TASS /. The commercial real estate market in Russia has lost more than 1 billion euros in foreign investment since the beginning of 2017 to the end of September 2020, according to the analytical report MarketBeat Light, prepared by the consulting company Cushman & Wakefield, made […]

MOSCOW, October 5. / TASS /. The commercial real estate market in Russia has lost more than 1 billion euros in foreign investment since the beginning of 2017 to the end of September 2020, according to the analytical report MarketBeat Light, prepared by the consulting company Cushman & Wakefield, made available to TASS on Monday.

“Since 2017, there has been a net outflow of foreign capital from Russian real estate. Over four years, more than 1 bln euros has left the country and was replaced by domestic investors,” the report says, adding that the volume of investments was estimated taking into account Jan-Sept 2020.

In particular, in 2019, the net outflow of foreign capital in the commercial real estate market in Russia amounted to 396 mln euros, and in the nine months of 2020 – 215 mln euros. Foreign capital is being replaced by Russian capital, Tatiana Divina, deputy head of the research and analytics department at Cushman & Wakefield, explained to TASS. “Foreign investors are selling their assets in Russia to local investors, and accordingly, they either scale down or greatly reduce their presence in the market,” Divina said.

In general, the current volumes of investments in commercial real estate in Russia exceed last year’s figures, despite the pandemic, the materials say. According to the report for the first three quarters 2020, growth was 40% (to 2.2 billion euros) year-on-year. The total 2020 volume is expected at 3 bln euros, according to the Cushman & Wakefield forecast.

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