Russia saw €1.1 bn of real estate investment in Q3, as much as over the whole of H1, but its figures remain down 43% compared to the first nine months of 2013, according to new research from JLL.
Russia saw €1.1 bn of real estate investment in Q3, as much as over the whole of H1, but its figures remain down 43% compared to the first nine months of 2013, according to new research from JLL.
The €1.1 bn of investment was more than in the whole of Q1 and Q2 combined. However, the Q1-3 total is 43% lower than the equivalent in 2013.
JLL predicts a year-end figure of €2.7 bn, which is less than half the €6.4 bn seen in 2013.
'A pick up in business activity, compared to the first half of the year, and comparatively large deals such as the purchase of the Pokrovsky Hills residential complex and the Novinskiy Passage business and retail centre are encouraging,' said Tom Mundy, JLL's head of research for Russia and CIS.
'However, tension between Russia and the West, the slowdown in the Russian economy as well as continued exchange rate volatility still reflect considerable risks for investors, especially for foreign ones, so we would be reluctant to say that these results indicate a recovery of the market.'
Foreign money accounted for 48% of investment in Q1-3 last year, but just 30% this year.