German bank HSH Nordbank said it expects investment volumes on the Russian real estate market to exceed $4.5 bn (EUR 3.2 bn) in 2007, up 42% on the $3.2 bn investment seen in 2006. The main growth has been on the office market, as well as in retail and logistics.
German bank HSH Nordbank said it expects investment volumes on the Russian real estate market to exceed $4.5 bn (EUR 3.2 bn) in 2007, up 42% on the $3.2 bn investment seen in 2006. The main growth has been on the office market, as well as in retail and logistics.
The Russian property market is still dominated by Moscow and St Petersburg but investors are also looking at other major cities with populations of more than one million. These cities will account for 20% of total investment in 2007, up from 8% in 2006, the bank said.
HSH, which cut its first Russian deal in 2005, is planning to open a representative office in the next month or so, said HSH senior researcher Immo von Homeyer. 'Russia is an incredibly competitive market because every German bank is looking to build a position there. It helps that we've now set up a joint venture with US corporate financer Northstar Finance,' he said.
