Russian investment soars 200% in 2011

Russian real estate investment grew to EUR 4.5 bn last year - 200% above the level reached in 2010, CBRE has announced.

Christopher Peters, director of Research, CBRE in Russia, said: '2011 was a record year for investment in Russian real estate. Some EUR 4.5 bn was invested, which is over 1.5 times higher than in 2008, the previous record year.'

For the first time in a few years, retail attracted the largest portion, and accounted for the largest deal: the sale of the Galleria shopping centre in St. Petersburg for over EUR 800 mln in December.

Peters said that the share of foreign investors rose significantly from that in previous years, though domestic investors have accounted for the majority of investment since the onset of the financial crisis. Yields in all sectors fell compared with 12 months ago.

'With slightly lower economic growth in Russia and globally in 2012 than in 2011, the record level is unlikely to be exceeded or repeated this year,' he added.