Investment activity inside Russia is really growing. According to CBRE, for the three quarters of 2019, total investment increased by 30%, to 161 billion rubles. (€ 2.29 billion) year on year. Consultants expect that by the end of the year the figure will reach 250 billion rubles. (€ 3.55 billion). Russian investors accounted for 83% of investments, 17% - for foreign ones. At the same time, according to Knight Frank, in 2018, foreign investors accounted for 24% of investments.
Meanwhile, overall activity in European markets is declining. According to CBRE, investment in real estate in all European countries, including Russia, in January-September 2019 decreased by 14%, to € 192 billion year-on-year. Investments in UK assets fell by 33% amid uncertainty about Brexit, and by 11% in Germany due to the small supply volume and unattractive prices. Significant growth - by 16% - was shown by France due to large transactions and the activity of Asian investors. So, in the summer of 2019, the South Korean Mirae Asset Daewoo, in partnership with the French Amundi Real Estate, bought a Tour Majunga skyscraper in Paris with an area of 67 thousand square meters. m for € 850 million.
Despite the negative dynamics, CBRE CEO in Russia Vladimir Pinaev suggests that in the future Russian investors will return to European countries. “For Russian capital, quality assets remain interesting, another question is that the market is opaque and money loves silence, especially in unstable conditions,” he argues. Marina Shalaeva, Director of Foreign Real Estate and Private Investment at Knight Frank, notes the high interest of Russians in assets in Greece, where in some cases the yield may exceed 30%. Irina Mosheva, Managing Director of Moscow Sotheby’s International Realty, connects interest in the country, as well as in the markets of Portugal, Spain and Cyprus, with investment citizenship programs. According to her, commercial real estate in Germany and Austria is also in demand.