Tuesday, November 21, 2006

Russia becoming a high demand commercial real estate investment market-place

"BOOMING energy prices coupled with increasing structural governmental economic reforms, a lowering inflation rate, increased political stability, increasing government and domestic investment and expenditure as well as a far better managed macroeconomic environment with strong debt repayment programme have all contributed to a very strong demand for, inter alia, commercial real estate space and investment in commercial real estate. According to Jones Lang LaSalle, an estimated $2.84 billion from Russian, and foreign capital, was invested in commercial real estate in Russia for the first nine months of 2006. This was an increase of 1000% over the same period in 2005. Jones Lang LaSalle places Moscow's prime office rents at USD 1200 per sq/m per annum, the second highest amongst European cities with only London, ahead of Moscow.
Moscow is now Europe's most dynamic real estate market with both construction and take up activity exceeding levels in all other markets," according to Pramerica Real Estate Investors." read more...

Worldwide Commercial Real Estate Information Portal 11/16/2006. From The Financial Express