Russian real estate is one of the fastest growing and profitable markets in Europe. Investment in this sector today are attractive not only for Russia but also the large western investors. The amounts of investment significantly higher than rates of previous years. All the more remarkable in that process becomes participation of major investment banks and funds, expanding the geography of their origin, market participants are using a variety of financial instruments. Among the new trend is the increasing interest of investors in regional real estate markets. Also increasing the number of international banks involved in financing and refinancing projects in different market segments - office, trade, warehouse real estate, housing. If a couple of years ago in the Russian market worked several funds, but now their number has grown times. Among the major players investing in Russian real estate, can be called such companies as Immoeast, Quinn Group, JER, Raven Russia, Rutley Russia and many other funds. There is growing interest in the Russian market by the British and American investment banks (Morgan Stanley, Merrill Lynch, Goldman Sachs and others). In refinancing actively involved major international banks such as EuroHypo, Hypo Real Estate, Areal Bank, HSH, etc. Experts note in the last two or three years marked increase in the number of deals with high real estate not only in Moscow, St. Petersburg, but other equally promising cities - cities. There are two groups of factors that create favorable conditions for investment in Russian real estate. The first (political) stability concerns political course of Russia, consistent internal reforms aimed at creating favourable conditions for investors, policy continuity in the country after the presidential election in 2008. The second group (economic factors) include sustained economic growth, the availability of free capital in Europe, lowering the cost of borrowing in the Russian market. Developed markets in Europe and America last few years feel a surplus of free capital. Only in the first half of 2007 in Western Europe was concluded with real estate deals worth over 70 billion euro. There is a gradual decline in rates of return in all market segments. Thus, in addition to Russia, Eastern Europe leaders are considered investment attractiveness of countries such as Poland, Czech Republic, Romania. In Russia, the real estate sector can be considered relatively young market: on average he has about 10 years. All segments of high real estate (offices, warehouses, elite housing) have enormous potential for dynamic development and investment. One of the most acute problems currently existing in the Russian market, is the shortfalls in supply of quality facilities for investment sales. At the same time, one can not help but note the positive trends - more and more companies are beginning to move to Western accounting standards. The biggest and successful players go to international capital markets through IPO. If we talk about the preferences of investors, depending on the segment of real estate, it turns out that all facilities to a greater or lesser extent in demand. There are, of course, the difference in investment returns, but it is usually negligible. For example, in the Moscow offices of the premium yield of 8 to 10% of annual income, commercial real estate - from 8.5 to 11%, warehouse - from 9.5 to 12%. Of course, as in Western Europe, the capitalization rate in Russia is gradually declining.Read also:REAL ESTATE Moscow continues Expensive!
