Lazy eyes listen
According to an industry research, investment in Russian real estate increased 76% year on year from January to May, reaching 274 billion rubles ($3.4 billion).
IBC Real Estate conducted research on investment transactions in residential, retail, hotel, and industrial properties, excluding plot purchases without a project, joint ventures, and the sale of homes to end users.
According to the research, $6.2 billion in investment was recorded in 2022, with $3.7 billion recorded in the second half of the year.
So far in 2023, the majority of deals have been done in retail and hotel real estate, with investments totaling $1.05 billion and $525 million, respectively – 1.8 and 2.4 times more than in all of 2022.
According to IBC Real Estate experts, activity has been fueled by the enormous exodus of foreign investors from Russia, who have sold their assets at a discount. According to the company’s estimations, such transactions accounted for 44% of all investments, or $1.5 billion, from January to May, a figure that is also greater than the total for the previous year.
“We expect Russian buyers to continue acquiring high-quality properties offered by foreign holders at a significant discount throughout 2023, but the number of such transactions will begin to decline in 2024,” said Mikael Kazaryan, head of capital markets and investments at IBC Real Estate.