Russia was riding high on the commodity boom, but now with commodity prices down considerably from their highs, Russia's real estate market is struggling. Not only is the real estate market on the decline, but so too is the country. Some analysts even think that Russia no longer deserves to be considered an emerging power. For more on recent developments in the Russian real estate market, read the following article from Global Property Guide.
For much of 2008, Russia’s housing market has seemed insulated from the global financial meltdown. However, the situation turned nasty during the last quarter of 2008. Property prices fell, transactions and sales plummeted, projects were canceled or shelved, and what limited mortgage lending there was available dried up.
At the end of H1-2008, the average price of re-sale flats in Moscow was US$24,840, up almost 30 percent from a year earlier, according to Knight Frank. On the other hand, the average price of newly-built flats was US$21,862, up 23.7 percent from a year earlier.
Tuesday, March 31, 2009
Sunday, March 29, 2009
Carrefour Store to Hire 450 Workers
French hypermarket chain Carrefour said Thursday that it planned to recruit about 450 employees for its first Russian store.
Real estate sources said Wednesday that Carrefour would occupy 14,300 square meters of space on two floors of a newly built Moscow mall that is set to open in May.
Carrefour, the world's second-biggest retailer after Wal-Mart, said in a statement that the hypermarket would open doors for customers this summer.
"Our company plans to develop actively on the Russian market," Irene Savitskaya, head of Carrefour human resources in Russia, said in the statement.
According to banking sources, the French chain is also considering buying Moscow grocery chain Sedmoi Kontinent, which has dozens of stores throughout the city.
Real estate sources said Wednesday that Carrefour would occupy 14,300 square meters of space on two floors of a newly built Moscow mall that is set to open in May.
Carrefour, the world's second-biggest retailer after Wal-Mart, said in a statement that the hypermarket would open doors for customers this summer.
"Our company plans to develop actively on the Russian market," Irene Savitskaya, head of Carrefour human resources in Russia, said in the statement.
According to banking sources, the French chain is also considering buying Moscow grocery chain Sedmoi Kontinent, which has dozens of stores throughout the city.
Wednesday, March 25, 2009
Russia’s real estate giant acquires the assets of bankrupt IIG
Together with the management board of IIG, Delin will send a new player in the marketplace, Ulogis. The newcomer is ready to storm the industrial and logistic segments, keeping focus on European market for start.
Ulogis aims at becoming a major player in the local real estate environment, focusing on: management and enlargement of IIG’s portfolio, tailor-made industrial and logistics real estate constructions and speculative acquisitions. Ulogis has 29 real estate projects under management.
After IIG filed for bankruptcy, Delin submitted a takeover bid for its assets that include a portfolio of 800,000 sqm as well as IIG’s management team. Thus, Filip Schelfhout, chief executive officer of IIG will take up the same position in the newly-formed Ulogis.
Ulogis aims at becoming a major player in the local real estate environment, focusing on: management and enlargement of IIG’s portfolio, tailor-made industrial and logistics real estate constructions and speculative acquisitions. Ulogis has 29 real estate projects under management.
After IIG filed for bankruptcy, Delin submitted a takeover bid for its assets that include a portfolio of 800,000 sqm as well as IIG’s management team. Thus, Filip Schelfhout, chief executive officer of IIG will take up the same position in the newly-formed Ulogis.
Monday, March 23, 2009
Russian-Language Real Estate Guide Published
The first Russian-language guide to buying real estate in Finland has been published. It is hoped that the guide will help buyers avoid misunderstandings about ownership rights.
Also, of late, more such real estate deals have been opposed by local residents.
The motive for the guide, jointly published by the local authorities of South Savo, South Karelia and Kymenlaakso, is to be found in the practical difficulties some real estate purchases by Russians have caused.
For many, building regulations are unfamiliar and building codes have been violated, for example by failing to get construction permits, building oversized docks, and putting up unauthorized fences. Some of these have even led to court cases.
Also, of late, more such real estate deals have been opposed by local residents.
The motive for the guide, jointly published by the local authorities of South Savo, South Karelia and Kymenlaakso, is to be found in the practical difficulties some real estate purchases by Russians have caused.
For many, building regulations are unfamiliar and building codes have been violated, for example by failing to get construction permits, building oversized docks, and putting up unauthorized fences. Some of these have even led to court cases.
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