Categorized | International

Commercial Real Estate Growth in Russia Not Likely to be Repeated

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Russia’s commercial real estate sector had a banner year in 2011. With that said, however, it is highly unlikely that the great successes achieved will be repeated anytime in the near future.


Bolstered by deals involving Morgan Stanley and other major investors, Russia’s commercial real estate market saw its average deal size jump by more than one hundred and five million throughout the year. The biggest deal did, in fact, involve Morgan Stanley, as the financial giant purchased a shopping center in St. Petersburg during the month of December.


Foreign investors played a big role in the immense growth of the commercial real estate market in Russia. Although domestic buyers still vastly outnumbered them, international investors saw their share of the market greatly increase.


The greatest growth in the commercial real estate sector in Russia could be found in the retail sector. The office sector also performed very strongly in 2011.


Economic growth in Russia will slow down slightly in 2012, and as such, it is unlikely that the nation will experience a repeat performance in the commercial real estate market. The market will still grow, however, as Russia continues to recover from the real estate crisis that impacted nations around the globe.


One reason why Russia will not experience a repeat performance with respect to their commercial real estate market is that many of the property sectors remain undersupplied. The nation continues to lack in the number of quality properties available to investors, and as such, the market will not be able to grow as fast as it potentially could.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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