Russian commercial property investment continues to be active, with 2Q12 volume up 15% at $2.8bn while total volume year to date has eased 7% to $4.18bn, says realtor ООО «Кушман энд Вэйкфилд». It raised its full-year forecast to $7bn from formerly $6.5bn.
Russian domestic investors became more eager to buy in second quarter, accounting for 50% of the total, and growing interest in the regions produced a 72-28 ratio between investment in Moscow and Russian regions. Due to unstable currency and bond markets, investors are showing greater confidence in real estate for risk diversification, the realtor said. Senior C&W research analyst Alexander Zinkovski said 2012 could achieve levels close to 2011, and the firm's boost in its full-year investment forecast is based on the market’s performance so far.
The retail segment led with 1H12 investment volume of $2.05bn, almost 50% of total. Investor interest in quality retail remains strong. Currently, investors are also showing interest in different categories; for example in prime centres like Galleria, St. Petersburg, Vremena Goda and Golden Babylon Rostokino in Moscow - as well as regional projects with higher yields. Stable rentals and low vacancies backed by strong consumer spending are sustaining interest.
Office accounted for 26% of total, or $1.09bn in 2Q12. Demand for quality offices is less volatile, and the 2Q12 volume is similar to the quarterly averages of 2011 and 2008. As with retail, investment interest is backed by high tenant activity. Take-up in 1H12 was over 1m sq.m. as construction activity remains at 2000-2001 levels.
Warehouse and industrial investment volumes were $311m or 7.4% of total. The short development cycle supports strong demand for owner occupier, built-to-suit transactions, which C&W expects to continue. Hospitality investments accounted for just $280m as the lack of investment quality properties remains a problem even in Moscow and St. Petersburg. This has prompted more interest in regional assets with higher entry yields. pie
Подрбнее: Property Investor Europe