The volume of completed real estate transactions in Russia decreased by 44% to EUR 1.2 bn in the first half of 2012 compared to the same period the year before, according to property adviser CBRE. That said, the Russian market performed better than some of its European counterparts. Foreign investors also continued to commit to investing in Russian commercial real estate.
The volume of completed real estate transactions in Russia decreased by 44% to EUR 1.2 bn in the first half of 2012 compared to the same period the year before, according to property adviser CBRE. That said, the Russian market performed better than some of its European counterparts. Foreign investors also continued to commit to investing in Russian commercial real estate.
Capitalisation rates stabilised and exceed other European market rates by 200-500 basis points, the adviser said.
Office and retail are the most sought-after investment sectors, but an interesting trend is also being seen in the industrial sector. Although domestic developers are very active, local investor activity remains negligible, despite very high profitability and low vacancy rates in the sector.
In H1 2012, CBRE tracked 13 large-scale, prime investment deals, just one less than in H1 2011. The average deal size decreased from $193 mln to $117 mln (EUR 157 mln to EUR 95 mln), with the top five deals accounting for 74% of total volume.
The top deals include Moscow-based ?1 Properties acquiring Ducat Place III business centre from Hines for $360-370 mln; Austrian group Immofinanz purchasing the 50% stake it did not already own in Golden Babylon Rostokino shopping centre; and London-listed Raven Russia buying Toros, the owner of Pushkino Logistics Park to the northeast of Moscow, for $215 mln.
According to the report, investment activity is expected to increase in H2 2012 with total investment volumes in 2012 reaching $4-4.5 bn.
