Investors interested in commercial real estate of Moscow and Moscow region
Investors are showing keen interest in the Russian commercial real estate. This is evidenced by data presented by S.A. Ricci: according to it, investments in the first half of 2016 amounted to $ 2.5 billion, which is almost 2 times higher than in the same period of 2015.
However, this figure is by 43% lower than it was before the crisis, in 2014.
The most attractive targets for investors are those that are located in Moscow and the Moscow region. 94% of all investments are concentrated here, that amounts to $ 2.3 billion. This figure is twice as higher comparing with the first half of 2015.
The share of St. Petersburg amounted to 28% in QI of 2016, has dropped down by 5%. Commercial property in the regions remains almost unclaimed, it accounts only for 1% of transactions.
It should be noted that a significant part of the investment in the first half of 2016 was generated by domestic companies. Foreign investments amounted to only 7%, which is lower than in the last six years. Among foreign investors there are representatives of the countries of Europe, America and the Middle East.
With respect to capitalization rates, they were distinguished by stability for the period and amounted to 10.5-11% for commercial and office real estate and 12-12.5% for storage real estate.
According to Alexey Bogdanov, managing partner S.A. Ricci, a keen interest of investors in the commercial real estate sugeests that it is a good time to acquire it.
“We expect this situation will be preserved on the market in the second half of the year. We expect that by the end of 2016 investment could reach 4-4.5 billion dollars,” stressed Alexey Bogdanov.