Russian real estate transaction volumes came to $8.2 bn (€6 bn) in 2013, the third record trading year in a row for the market, according to data from Colliers International.

Russian real estate transaction volumes came to $8.2 bn (€6 bn) in 2013, the third record trading year in a row for the market, according to data from Colliers International.

The property adviser recorded volumes of $8 bn and $7.4 bn in 2012 and 2011 respectively.

The results, Colliers International said in its annual report on the Russian investment market, underline how the real estate segment continues to attract both Russian and international institutional investors despite the economic instability.

One of the most active players this year was Morgan Stanley (a total of $1.2 bn invested), Hines CalPERS ($600 mln), Millhouse Capital ($1.1 bn) as well as institutional Russian companies such as BIN Group ($980 mln) and O1 Properties ($530 mln).

The past year was unique in terms of large deals closed across all sectors of the market. Early in the year, Morgan Stanley Real Estate Investing set a new record in the retail sector by purchasing the Metropolis shopping centre from Capital Partners for $1.2 bn. Later in 2013, Russian investment company Renova sold the MLP industrial portfolio to BIN Group for $900 mln. In addition, Millhouse Capital acquired the White Gardens business centre for an estimated $740 mln. And finally, Azimut Hotels purchased the mixed-use development Radisson Moscow Olympic for approximately $120 mln.

One of the largest regional deals ever recorded was closed in 2013 with the acquisition of the Aura shopping centre in Novosibirsk by RosEvroDevelopment for approximately $250 mln.

Despite continually diminishing Russian economic forecasts and an increase in the number of pessimistic outlooks for projected future growth projection in Russia, institutional investors did not hold back on acquisitions.

Do you want to know more about Russian real estate? PropertyEU is holdings its first Russian Investment Briefing on Thursday 6 February 2014. The event is hosted by Colliers International.