Real estate investment in Russia is booming – report — RT Business News
Transaction volume with foreign investors has already exceeded the 2022 total
Investment in Russian real estate jumped 75% this year in annual terms to 467 billion rubles ($4.8 billion), according to an industry study.
A study by IBC Real Estate found that residential real estate was the biggest beneficiary of investment, with volumes up 27% to $1.5 billion. Next came commercial real estate, up 31% to $1.5 billion. Investment in office buildings jumped 20% to $962 million, while investment in hotel and industrial properties saw inflows increase by 9% and 8%, respectively, to $435 million and $373 million. dollars.
By the end of 2023, investments in Russian real estate are expected to break last year’s record, the head of the capital markets and investments department of IBC Real Estate, Mikael Kazaryan, told reporters on Monday. Last year, a record investment of $6.2 billion was recorded in Russian real estate, of which $3.7 billion was recorded in the second half of the year.
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Analysts attribute the growth in investment to Russian investors and the massive withdrawal of foreign investors, mainly from Europe. According to IBC Real Estate, the volume of transactions with foreign investors has already exceeded the total value of 2022, amounting to $1.2 billion. Western players are being replaced by Armenian and Kazakh investors, and there is also interest from Chinese investors, Kazaryan said.
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