Investment in Russian commercial real estate is forecast to hit a record EUR 4 bn this year, outperforming the pre-crisis years of 2006 and 2007, according to Darrell Stanaford, head of CBRE's Russian office. He was speaking during Expo Real in Munich.
'This was a big year for investment - we are already at over EUR 3 bn in the first three quarters alone, compared to about EUR 1 bn for the whole of 2010,’ Stanaford said. Although local investors accounted for about 70% of the total, foreign players are showing increasing interest in the market, he added. 'Because of the strong economic forecast in Russia, the higher yields, and the continued uncertainty in other regions, we are experiencing renewed appetite from international players.’
Foreign investors recently active in the market include US groups Hines and Heitman. According to Stanaford, increased competition is putting pressure on yields for prime products, which are expected to go down to 8% by the end of the year, from 10% at the start of 2011.
PropertyEU filed 70 news stories, published three Daily News magazines and conducted 15 PropertyTV interviews from Expo Real. Click on the link below for the full overview.