Investors buy EUR 1b of Russian property in Q3

Russian real estate investment volumes came to $1.3 bn (EUR 1 bn) in the third quarter of 2012, according to new research by property adviser CBRE.

The result is 11% down year-on-year, but just 3% compared to Q2 2012.

Cumulative amount of investments has reached $2.85 bn since the beginning of the year.

There were 10 investment deals in Q3 2012 compared to 17 investment deals in Q3 2011 although the average deal size in Q3 2012 was $130 mln. This compares with an average deal size of $85 mln in the record year of 2011 (Q3).

Valentin Gavrilov, Director, Research Department in CBRE, Russia, said: 'The Russian real estate market feels quite comfortable, being far ahead of European recovery levels. The lack of clear signals of a turnaround in the eurozone economy is having a conservative influence on investors' activity in Russia. This is due to the high risk of at least one of the southern countries exiting the eurozone, and the subsequent high volatility on the financial markets. In this context the European markets are facing greater difficulties with recovery.'