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Moscow, 17 January 2013 – Jones Lang LaSalle announces 2012 results and an outlook for 2013 in Russian real estate investment market.Last year proved to be another stellar year for the Russian real estate investment market, total transaction volume amounted to USD8.6bn, with up by 1.3% compared to 2011. At the same time commercial real estate component of this investment volume reached USD7.9bn in 2012 (down by 4.8%).Demonstrating significant growth in year-end activity we see that Q4’s investment volume of USD3.5bn was 42% above that of Q4 2011. Preliminary forecasts for 2013 are predicting an annual investment volume of around USD7.5 bn.Olesya Dzuba, Head of Capital Markets Research, Jones Lang LaSalle, Russia & CIS, added: “For the last two years the Russian real estate investment market has demonstrated a positive trend with higher levels of annual investment volumes compared to pre-crisis results. Additionally, stable macroeconomic indicators, an improved overall investment climate, and relatively easy access to financing continue to attract investors to the Russian real estate market. Comparatively higher prime yields in Moscow are clearly offering a significant premium relative to other European markets. Investor interest continues to be focused on high quality core assets. In 2012 notable investment deals included assets such as Ducat Place III and Silver City business centres by O1 Properties.”Investment volume dynamics, USD bn** Investment deals, excluding land purchases, JVs, direct residential sales to end-usersSource: Jones Lang LaSalle
Russian investors demonstrated a higher share of market activity in 2012, accounting for 78% of the total investment volumes, compared to their 2011 of 59%. Both the level of interest and activity from foreign investors is not falling – but it should be noted that local players are often quicker in their decision making and have easier access to financing, resulting in a higher degree of closed transactions.
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