Foreign investors are striving to capital
Moscow remains one of the most attractive global metropolises for investors in real estate and development. Companies from all over the world, despite possible sanctions and risks, continue to look for an opportunity to implement a project in the Russian capital. Officials, experts and the builders themselves told the “Moscow perspective” about what attracts foreign business in Russia.
During the spring of this year at the St. Petersburg Economic Forum the results of the annual research of the Agency for Strategic Initiatives (ASI) on the investment climate in the subjects of Russia were summed up. According to the National rating of the investment climate, compiled on the basis of the survey, Moscow has risen by one position and now ranks second in it. The first is the Tyumen region, the third – the Republic of Tatarstan.
Officials call the main reasons for the growth of the investment attractiveness of the Russian capital the granting of privileges and preferences for existing efficient enterprises, the formation of a comfortable environment for doing business, as well as the large-scale development of transport infrastructure and improvement of the public spaces of the city. By all accounts, the capital was also improved thanks to the development of transport infrastructure. Large-scale work on the construction of roads, metro and the development of railway communication in the capital allowed to involve in the economic circulation the previously vacated land, and, consequently, to generate a flow of infusions into the development of these sites. According to the Deputy Mayor of Moscow on Urban Development Policy and Construction Marat Khusnullin, the volume of investments in the development of urban areas after the arrival of new
In general, the amount of accumulated investment in the city’s economy from the implementation of various construction projects is about 2 trillion rubles. Head of the Moscow construction complex Marat Khusnullin believes that the volume of investments in the industry in the coming years will not decrease, and interest in development in Moscow is still high. The same opinion in assessing the prospects of the capital market is shared by analysts and investors. Over the next two to three years, the volume of investment in the real estate market in Moscow will be stable. Today, the Russian market has the highest profitability in the world from projects related to development. If in Europe the average rate of profit is 4-5%, then in our country it reaches 10%.
Recently, the greatest interest in projects in Moscow has been shown by French and Chinese companies. For example, one of the French industrial and construction groups is interested in creating consortia in Russia for the implementation of large projects and even offers its expertise in planning and designing new quarters for renovation. Another French company, SUEZ, already has an agreement signed with Moscow, which provides for cooperation in the field of waste management, including those that are formed during the implementation of the housing renovation program.
Companies from China have bigger plans. The CRCC (China Railway Construct-tion Corporation) already participates in the design of transport hubs in the Russian capital, and also builds the southwestern section of the Grand Ring Line as contractors. However, even today, representatives of the company declare their interest in the projects of building the Moscow territories along the new subway lines as investors. Thus, despite the difficult foreign policy circumstances, a number of new construction projects with the participation of foreign investors can be expected in the Russian market in the coming years.
Source: “Moskovskya perspektiva”