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Moscow

Russian Real Estate Investment Volume in 2013 Could Reach USD8bn

Jones Lang LaSalle presents Q3 2013 real estate market results


Moscow, 3 October 2013 – Russian real estate investment market showed slight growth, at 1.3%, during 9M 2013 compared to the same period of previous year, despite the sluggish economic growth, to result in USD5.3bn, according to Jones Lang LaSalle analysts. This number includes 1.5bn of Q3 investments, down by 37.8%YoY.

Investment volume dynamics, USD bn*
Investment volume dynamics_03102013.png

* Investment deals, excluding land acquisitions, JVs, direct residential sales to end-users

Source: Jones Lang LaSalle

Olesya Dzuba, Deputy Head of Research, Jones Lang LaSalle, Russia and CIS, notes: “Real estate investment market is still in positive mode, and economic growth moderation does hurt it yet. Taking into account the volume of deals under negotiations, we have revised our forecasts for this year to USD8bn.”
 
Regional growth continues, with regional investments amounting to USD299m, or 20% of total Q3 deals volume compared to 13% in Q2. The closure of the historically largest regional deal, the sale of Aura shopping centre in Novosibirsk of about USD260m, was a significant contribution to regional investment share.
 
Regional investment activity growth: Share of regional investments in total*, 12-month moving average
Regional investment activity growth Share of regional investments in total_03102013.png
* does not include markets of Moscow and St. Petersburg

Source: Jones Lang LaSalle

Investor interest is still focused in office and retail market segments, their shares accounted to 38% and 35% in Q1-Q3 2013 respectively. Olesya Dzuba noted: “As we expected, nine months investment volume into the warehouse sector has increased to 17% compared to 10% in the same period of 2012. This became possible thanks to MLP deal.”
 
The share of foreign capital accounted to 42% for Q1-Q3 2013 vs. 19% in respective period of 2012. The same indicator in Moscow accounted to 46% in Q1-Q3 2013 vs. 19% in the same period of 2012.

Warehouse sector share growth in total investment volume, 12-month moving average
Warehouse sector share growth in total investment volume_03102013.png
Source: Jones Lang LaSalle
 
 
Russian Investment Volume Breakdown by Sector
Russian Investment Volume Breakdown by Sector_03102013.png
Source: Jones Lang LaSalle
 
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Aktau. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
For further information, please visit www.jll.ru