Russia is 'biggest growth opportunity'

Russia is not immune to the ‘debt squeeze’ but is the most dynamic real estate market in Europe, according to Jones Lang LaSalle. 'We really do see Russia as a very strong growth market,' said Mark Jagger, managing director of Jones Lang LaSalle in Russia.

Speaking during a MIPIM presentation of the property adviser’s predictions for the European real estate sector in 2008, Jagger was at pains to dispel the 'myth' that Russia’s economy is based on oil revenues alone. 'Construction remains one of the fastest growing sectors in the economy, which we expect to be maintained in 2008,' he said. Jagger also said that while Russia was not totally immune to the turmoil in the financial markets, the effect on real estate investment in Russia was far less than in Western Europe.

Hotspots this years will be the birth of business parks in Moscow and the continued emergence of Russia’s regional cities. 'Russia's retail market is driven by very different consumer spending patterns to those in the West and is still very undersupplied in terms of retail space per capita. So the number of new shopping centres is set to double year on year for the next few years,' Jagger said.