Why Russian real estate market is seeing a drop in foreign investments

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Why Russian real estate market is seeing a drop in foreign investments
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From January to March 2018, experts have recorded a decline in a total volume of investment transactions in the Russian real estate market, with the most significant decrease observed in the sector of foreign investment.




As Interfax news agency reported on Friday referring to a study conducted by CBRE, over the course of this period, a total volume of such transactions amounted to $150 million, which is almost five times less than last year's figure. Experts believe that the low conversion of transactions is quite typical for the beginning of the year, especially given that the previous quarter was marked by high activity.

The share of foreign investment in Russian real estate fell sharply from 22% a year earlier to 5% this quarter. Analysts claim that such performance does not indicate that foreign investors’ interest is waning. A considerable portion of deals are still under negotiation and, judging by their number, we can safely make optimistic forecasts. Moreover, there is a reason to expect that the volume of investment in Russian real estate will even exceed the indicator of 2017.



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