Russian property investments on the up
Buried in recent news articles regarding Russian gas supply was a Vedomosti article reporting that in the third quarter of this year investors spent almost $1.8 billion on commercial properties in Russia. Industry data, supplied by international property consultants Colliers International, showed that performance in Russia was strengthening. The figure was significantly higher than investments recorded in the sector in the first six months of this year ($1.3 billion).
These figures should make good reading for those still holding on to investments in Russia, even if analysts at other property advisers in the country, C&W and CBRE, attribute the rise to a few large investments around Moscow made by Swiss, Georgian and Qatari funds. Three months ago it seemed almost impossible for Western audiences to imagine that the Russian market would resist the financial restrictions imposed on it. However, Colliers predicts the market will continue to grow and by the end of the year there will be a string of investments to report.
The new positivity in the Russian market contrasts strongly with the antipathy to Russia seen in much of Europe and the US. Let’s hope a few more bold pioneers can change this. The longer investment in Russia remains a dirty phrase in Europe, the more investors will lose out on finding niche – and profitable – investment opportunities in this growing economy.