War is war, but business is business: investments in Russian real estate hit a record high in the second quarter

CrimeaPRESS reports:

According to IBC Real Estate, experts say RBC Real Estate, in total, in the first half of 2023, investment inflow into real estate assets reached 360 billion rubles, which is twice as much as a year earlier, and is almost comparable to the annual value of 2021. The volume of investments in real estate in Russia in the second quarter of 2023 increased three times compared to the same indicator in 2022 and amounted to 219.5 billion rubles. More than half of the total volume of transactions was formed by the trading segment. Such data are contained in the study of the consulting company IBC Real Estate (available in the editorial office).

The total volume of investment transactions with real estate in Russia in the second quarter of 2023 amounted to 219.5 billion rubles. This is three times higher than the result of the same period last year, which was a record in terms of investment in real estate in the entire history of observations, and only 5% lower than the value of the fourth quarter of 2022, the highest in annual dynamicsthe study says.

According to IBC Real Estate, from April to June 2023, the bulk of investments fell on the trading segment — 57% of the total volume of transactions. In absolute terms, investments amounted to 125.8 billion rubles, which is 2.7 times higher than the figure for the previous year as a whole. A landmark transaction was the sale of the Metropolis shopping and entertainment center, one of the largest transactions in the shopping center market since 2000. In second place in the second quarter is the residential sector, which accounted for 23% of investments. The top three is closed by offices with a share of investments of 12%. Next come warehouses (7%), the rest is accounted for by MFCs and hotels.

According to IBC Real Estate estimates, in the first half of 2023, the total investment inflow into real estate assets reached 360 billion rubles, which is twice as much as in January-June 2022, and is almost comparable to the annual value of 2021. A third of investments fell on transactions carried out due to the exit of foreign companies from Russian assets. The volume of such transactions has already exceeded the final value of 2022 (109 billion rubles) and amounted to 119 billion rubles. By the end of the year, a number of large transactions are expected to be closed both by foreign owners selling local facilities and by Russian companies consolidating their assets, analysts predict.

In 2023, we expect high investor activity to continue. An important role in the development of the domestic investment market is played by the repatriation of capital caused by restrictions for domestic investors in foreign markets, — commented a member of the board of directors, head of the department of capital markets and investments at IBC Real Estate Mikael Kazaryan. — Real estate retains its status not only as a defensive asset, but also opens up opportunities for future business growth. Investors are now focusing on regional shopping centers and business centers, land plots for housing and commercial development, as well as reconception and redevelopment projects. As a result, the total volume of transactions may reach more than 580–600 billion rubles,” Mikael Kazaryan added.

According to IBC Real Estate, the total volume of investment transactions with Russian real estate in 2022 amounted to 494 billion rubles. This is 36% more than in 2021, and a record for the entire 20-year history of observations.

Previously, NF Group analysts gave their assessment of investment in real estate. According to them, the total volume of investments in real estate in Russia in the first half of 2023, according to preliminary estimates, amounted to more than 291 billion rubles. This was a record value and is 53% higher than the result of the first half of last year. According to the results of 2023, 500–600 billion rubles may be invested in Russian real estate, which will be the maximum in the entire history of observations, the company also predicts.

source: RBC Real Estate

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