Russian REAL ESTATE becoming increasingly attractive to Western investors.

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.
Labels:

REAL ESTATE Moscow continues Expensive!

The average price of Moscow apartments proposals for follow-up to February increased by 5% to 6028 dollars per sq. m. This monitoring data show the real estate market. The volume of proposals in February increased by 19% and amounted to some 35 thousand objects. Number of flats, first exhibited for sale, increased by 11%, the share of the new proposal takes 32% of the total. The increase in the average price observed in all districts of Moscow. Maximum Yields locked in cheaper areas (5-7%), in prestigious areas slightly lower rate (4-5%). As usual most popular enjoy one apartment. Their price has increased by an average of 6.5%. Few grew up prices for multi-apartment - 3.3%. Housing economy class is becoming more expensive in now as quickly as possible. Leaders of that segment - "hruschevki," followed by "low quality panel." The increase in prices in the middle and business classes is at one level, the price of apartments in the category "monolith" for the month has not changed. The volume of proposals urban apartments began to recover lost during the Christmas holidays positions and almost reached the level of November-December 2007 more rapidly in the first months of this year, becoming one expensive apartments and cheap housing of low quality. This suggests a higher demand for apartments, which are more likely than others in times of declining stability used in investment purposes. In the coming months we expect lowering activity of buyers and prices decline in growth to 3%. " With the beginning of the year, average prices in the secondary housing market in Moscow grew by 10%. In February, despite the increase in the proposal, the pace of price growth remained at the level of the previous month.
Labels:

REAL ESTATE in Moscow is more expensive than in London!

In Britain started this crisis in the residential property market. If even a month ago, the participants talked about the possibility of slowdown in house prices, but now they're the fact that the pace of cheaper housing not only slow, but on the contrary accelerate, and this acceleration will only grow over the next 2 years. Previously, there was a decline in prices during the year by 10% since April up to and including residential real estate Great Britain lost value of about 1% per month. Now think about this as a dream, after all, only for May prices fell by 2.5%. As a result, during the first 5 months of 2008 the total reduction of the cost of housing was about 5%. The fall in prices in one of the most expensive housing markets may well affect the dynamics of prices on the Russian housing market. In doing so already, in May Chinese real estate market participants have spoken about that in 2009 the market decline accelerates. The main problem of English housing market is the same as in the United States. There is no shortage of housing is not there. However, over the past 16 years, housing has become more expensive in England more than 3 times. Of course, this is nothing in comparison with Russian realities, where housing has become expensive by the same amount of just over 3 years. I attributed this boom was the availability of cheap borrowed money. The rates for mortgages were very low. In doing so, naturally, deposit rates were also low. They are always lower loan rates. As a result, compared with the return of deposits has proved more profitable to invest in housing, and donate it to hire. In doing so, it turned out that it is profitable, even if such investment to buy housing loans. And the population of active transactions in the style of "cash and carry", where anything purchased at the expense of borrowed money for later retrieval income. Through such an activity shelter population in England had become actively expensive. And flats were bought on credit, not only for putting into recruitment, but also for resale at inflated prices. However, since late 2006, was to unfold in the world financial crisis, and lending rates began to rise. In doing so, the majority of mortgage loans granted in Western Europe, as in the U.S., not at a fixed and floating rate on. Therefore, when banks began to raise lending rates, they began to grow and for people already accepted credit. But first, this is not a severe impact on their pockets, as well as improving went smoothly. However, once in August 2007, several international banks have recognized several tens of billions of dollars in loans issued in the U.S. population, irretrievably lost, mortgage rates began to rise in Western Europe very quickly. And the continued profitable home proved unprofitable for many. As a result, they have to sell the house, purchased on credit. In doing so, to sell a house in the absence of housing shortages becomes difficult. . However, winter is traditionally considered a time of active demand for removable housing. And in this regard has been slowly declining prices. Also, everyone knows that during the summer rental market is quiet. But no one expected that so strongly affect the dynamics of the fall in real estate prices. If even aim at the May pace of the English cheaper housing, it would mean that by the end of 2009 real estate in England may become cheaper half. In doing so right now the average cost of homes in Britain, representing 173.6 thousand pounds sterling or $ 344 thousand, and the average Moscow apartment costs about $ 450 thousand Thus, Moscow, at an average cost of housing has outstripped not only New York and London but - even more recently the most expensive city in the world.
Labels:
Подписаться на: Сообщения (Atom)