Russia is ahead of Europe, the growth rate of investment in commercial real estate

MOSCOW, June 15. /TASS/. Russia became the leader in Europe, the growth rate of investment in commercial real estate in the first quarter of 2017. The investment volume in this segment grew by of 229.5% compared to the same period of the previous year and reached €0,68 billion this is stated in the analytical report of the international consulting company Knight Frank.

In the first quarter of 2017, the negative dynamics of growth of investments in comparison with I quarter of 2016 showed more than half of all European countries, analysed by Knight Frank (13 out of 20 countries). However, the volume of investments of Russia in this rating takes only the 12th place. At the head are Germany, UK and France.

“Increasing interest in (Russian – approx. TASS) market from new players from Asia and middle Eastern funds not previously available on the market. While maintaining the stability of exchange rates is a high probability that by the end of the year to host several large transactions with participation of foreign capital, which will undoubtedly give a positive impetus to the market as a whole”, – commented the results of research Director of financial markets and investments at Knight Frank Alan Baloev.

About 65% of Russia’s investments amounted to investments in office properties, 30% was invested in transactions with commercial real estate, warehouse real estate – only 5%.

The consulting company noted that there were concluded 12 transactions among the largest: the purchase of Bank of “VTB 24” of the tower “Eurasia”, buy “RosEvroDevelopment” shopping center “Leto” in St. Petersburg, as well as the purchase of “Gazprom” office building on Nevsky Prospekt, 58.

The European market

The total investment in European commercial property in the first quarter of 2017 amounted to €44.2 billion, which is 8.3% less than the same quarter of 2016. This figure also 38.3% lower than the results of IV quarter of 2016.

The first place ranking for total investment in the first quarter of occupied Germany with €11.3 billion and an increase of 27.3% compared to the same period in 2016.

Thus, the German investment market took the lead in the European rankings, ahead of the British (€10.8 billion, a decline of 22.1%). Analysts attribute the decline of the UK with the uncertainty of the consequences of Brexit for the economy and investors.

The situation is similar in France: here there is a negative dynamics of 33.2% (€3.6 billion) against the backdrop of presidential elections and the uncertain situation which preceded them.

The highest investment rate in addition to Russia showed Hungary (+228,5%), Czech Republic (157,6%) and Spain (79.2 per cent). Outsiders Belgium (67.3 per cent) and Poland (-66,1%), according to the report European Quarterly Commercial Property Outlook.