In 2023, we saw the peak volume of commercial real estate investments in ruble terms for the entire history of the Russian market. The majority of transactions in 2023 were made with assets that were rolled out to the market not by choice but rather by necessity. For investors from Russia and friendly countries, the change in the geopolitical situation became a golden opportunity to add high-quality properties to their portfolios. Both core and non-core Russian investors along with end users were active throughout 2023.

The reduction of institutional-grade assets on sale, as well as the persistently high cost of debt financing after a shar increase in the Central Bank’s key rate will be restricting factors for the commercial real estate investment market in 2024.

This will certainly limit opportunities for investing both in brownfield and greenfield projects unless the interest rates of project financing are subsidized.