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Demand Exceeds Supply in Russian Real Estate Market
Russian commercial real estate investment could reach $4.5 billion (€3.6 billion) in 2012, reports CBRE. This would be a decline from the $6.4 billion (€5.1 billion) recorded in 2011.
“Provided wider macroeconomic conditions do not deteriorate considerably,” comments Valentin Gavrilov, director in CBRE’s Russian research team, “CBRE expects the Russian commercial real estate investment market to reach up to $4.5 billion in 2012.”
The demand for grade A properties, especially office and retail assets, continues to exceed supply. According to CBRE, Russia has a lack of investment-grade stock, which is likely to support asset prices.
“CBRE expects a 4 percent growth of GDP in Russia for the third year in a row, unless economic problems in Europe and the United States trigger a sharp medium-term drop in oil prices. The Russian economy is expect