The economies of Central and Eastern Europe are expected to strengthen further in the next year, with the Czech Republic, Poland and Romania delivering strong growth. At the same time, Russia is expected to remain 'the major regional powerhouse' in 2007, according to a report by international property advisor Jones Lang La Salle.
The economies of Central and Eastern Europe are expected to strengthen further in the next year, with the Czech Republic, Poland and Romania delivering strong growth. At the same time, Russia is expected to remain 'the major regional powerhouse' in 2007, according to a report by international property advisor Jones Lang La Salle.
Real estate prices in Russia are in their fifth consecutive year of strong growth, and rose 70% last year. In total, prices have increased between 253% and 288% in the last five years, while inflation was only 189% over the same period. The commercial property sector in Russia and in Moscow in particular is currently the fastest growing in the world, with an estimated $3 to $3.5 bn being ploughed into this market segment in 2006.
The total commercial floor space in the city of Moscow accounts for some 8.5 million m2, characterised by a significantly low vacancy rate, less than 3%, according to Trust Bank. Real estate is one of the three biggest contributors to Russia's economic growth, which ended last year up 7% year-on-year and is expected to accelerate further in 2007 to 7.5%, OfficeNews said.