Moscow's deputy mayor Marat Khusnulin has downplayed the impact of the Crimean crisis on real estate development and investment in the Russian capital.
Moscow's deputy mayor Marat Khusnulin has downplayed the impact of the Crimean crisis on real estate development and investment in the Russian capital.
Speaking in an exclusive interview with PropertyEU during a press conference for Russian journalists at the MIPIM real estate fair in Cannes on Wednesday, Khusnulin said that international interest in Moscow remained strong. Western investors may be thinking twice about stepping into Russia due to the conflict in Ukraine, but investors from other corners of the world including China and the Middle East remain interested in the opportunities in Moscow, he maintained.
'The development opportunities are immense. The numbers speak for themselves.' Last year PropertyEU reported that Moscow has several large urban development schemes aimed at providing more modern work and living areas, and Moscow is seeking to create a Russian Silicon Valley.
Khusnulin cited a recent survey by the Moscow Urban Forum, an event held annually by the Moscow city government since 2011 in conjunction with the World Bank and the Urban Land Institute. According to the survey, market demand for real estate is Moscow is very high and prices are rising. There is still a large unused resource, he said, pointing to industrial areas or brownfield sites around the city. 'These Industrial areas occupy about 16% of the city territory, or about 15,000 hectares.'
Aside from the residential sector, a strong demand also exists for retail and logistics facilities, he added.
The commercial real estate interests of the former mayor of Moscow and his wife have given the Russian capital a reputation for cronyism and corruption. But a level playing field now exists for both domestic and international investors and developers in terms of development regulations and permit requirements, Khusnulin said. 'Since the appointment of the new mayor in October 2010, things have really changed.'
In the past few years, Moscow mayor Sergei Sobyanin has gradually relaxed the massive construction projects of his predecessor and won praise for his efforts to combat corruption. These initiatives have been described as the 'most sane piece of city planning in years'.
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