Despite the recent delivery of numerous hotel projects in the past six months, a fundamental difference of expectations between potential buyers and sellers means few deals are likely in the coming months.
Companies looking to purchase rather than lease office space in Moscow may find the current market environment in the city conducive to a deal, but there remain numerous issues to consider before buying.
In 2005 Viktor VekselbergТs Renova Group turned to Veniamin Golubitsky, a former politician from Yekaterinburg, to lead its development arm, Renova StroiGroup, as it attempts some of the countryТs most ambitious real estate ventures. Among its various projects, in the Sverdlovsk region Renova StroiGroup is effectively building a new town, Akademichesky, from scratch. Alexander Teddy discussed with Golubitsky the complications of operating in RussiaТs regions, how to harness state assistance and the mistakes of European construction in the 20th century.
The Lord Foster of Thames Bank was a favorite for designing a new-age landscape in twenty-first century Russia. But his impending influence on the skyline has reduced as the bank balances that were due to finance construction of his numerous plans withered.
Russia's real estate market potential in the regions has dropped off dramatically from the pre-crisis days. For an investor to achieve market traction now outside Moscow and St. Petersburg, one needs to know where to start.