After 9 months of 2023, the level of investment in the commercial real estate market of Russia has amounted to RUB 452 billion, or USD 5,465 million, which is 2,5 times higher than for the entire year 2022 and 4 times higher than for 2021. What’s more, this is the peak value in the history of the Russian market in ruble terms.

The transaction volume remains at a high level due to the pent-up demand effect and the exposure of some properties on the market that were never put up for sale before. Like in the previous period, Q3 2023 saw a number of major transactions related to the sale of assets, including entire portfolios of companies leaving the Russian market or curbing their profile.

At the end of the year, we expect the volume of investments to near RUB 500 billion. In the medium term, the volume of transactions will start to stabilize – many companies have already sold their assets in Russia or they are at an advanced stage of negotiations. The main constraint for the real estate investment market in Q4 2023 could be the growth and persistence of high interest rates for project financing after the Central Bank has upped the key rate. This restricts opportunities for investments in ready-to-use projects as new development that does not imply subsidized rates for financing.