The size of investments in the domestic real estate market grew 128 percent last year to reach almost 2.2 billion euros ($3.1 billion), as economic stabilization after the crisis encouraged foreign and local investors, a survey said Monday.
Although the overall transaction volume remained low compared with the pre-crisis level, Russia outperformed other countries in Central and Eastern Europe and mainstream investors are expected to return to the market in the future, CB Richard Ellis said in the report.
Russia saw a total of 27 deals last year, compared with 22 in 2009, with an average transaction volume accounting for 80 million euros, almost twice as much as in 2009.
According to the report, the stabilizing of the domestic economy, which grew 4 percent last year, resulted in increasing investors' confidence.
"The results of 2010 showed a significant increase in the investors' confidence of the stability of Russia's real estate market," said Christopher Peters, head of research at CBRE.
Wednesday, May 18, 2011
Saturday, May 14, 2011
Blackstone eyes Moscow Real Estate
Plain-vanilla leveraged buyout deals in the United States are "pricey," Blackstone's chief operating officer Tony James told analysts on a conference call. He is instead searching for opportunities in energy, emerging markets and in providing growth capital to small companies.
Blackstone's international push saw it expand into Istanbul and establish a "small beachhead out of Moscow" during the first quarter, James said. Blackstone has one person operating in Russia, he said.
"We've been flirting with Russia for three years," said James. "I don't know how many times I've sat through traffic in Moscow to try to figure the place out."
James said the country is "a bit inscrutable ... but we're open-minded about opportunities there".
Still, James said it was important to be "very careful" in the country despite Russia benefiting right now from high energy prices.
"It is a market that is capital-constrained," James said. "Done right, it has potential to have some interesting returns, but we all have the obvious questions about the transparency."
Blackstone's international push saw it expand into Istanbul and establish a "small beachhead out of Moscow" during the first quarter, James said. Blackstone has one person operating in Russia, he said.
"We've been flirting with Russia for three years," said James. "I don't know how many times I've sat through traffic in Moscow to try to figure the place out."
James said the country is "a bit inscrutable ... but we're open-minded about opportunities there".
Still, James said it was important to be "very careful" in the country despite Russia benefiting right now from high energy prices.
"It is a market that is capital-constrained," James said. "Done right, it has potential to have some interesting returns, but we all have the obvious questions about the transparency."
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