Investment in retail real estate in Russia could reach record highs this year, according to experts from Cushman & Wakefield.
Retail was the most attractive sector for real estate investors in the first half of 2013, bringing in $2.06 billion and accounting for half of all investment over the period. Total annual investment in 2011 in the sector was $2.04 billion, while last year it was $2.59 billion.
"If all planned deals go through, then 2013 will become a record year for volumes in retail real estate," said Alexander Zinkovsky, senior analyst at Cushman & Wakefield research department.
Russia became the number one retail market in Europe last year. Consumers' real incomes continue to grow, and Russians spend about 70 percent of their earnings on consumer goods.
Investment into commercial real estate in the first half of 2013 came to $4.63 billion, almost unchanged from the same period last year, but an 82 percent increase on investment volumes in the second half of 2012.
Investment in office space was $1.71 billion in the first half of 2013, while warehouses and industrial real estate received $600 million.
Though up to 85 percent of commercial real estate investment is still targeted at Moscow, investors are shifting their attention to the regions. Between 1.6 and 2.8 million square meters of shopping center space will open across Russia over the next two years.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
![paiment methods](https://static.themoscowtimes.com/img/contribute/payment_icons.png)
Remind me later.