Report title: Russia Real Estate
from SeeNews - Industry Reports
23 page report published Sep 01, 2008

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The Russian real estate market continued to expand in 2007 and early 2008 due to the robust economy growth, fuelled by increased oil and gas exports and record high prices on the global commodity markets. Inflation, however, rose by 4.4% on the year to 11.9% in 2007.

Document ID: IR15
Country: Russia
Industry: Real Estate
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Sections
TitleStarting PageNumber of Pages
Residential real estate32
Office real estate52
Retail real estate71
The Russian market of retail property is supported by the development of retail trade as purchasing power in Russia is increasing through the economic upbeat of the country. In mid-2008 there was healthy demand for prime real estate in high streets. The gr71
In the first quarter of 2008 the total supply of retail space in the capital Moscow increased by 114,000 sq m and by mid-2008 the total stock of retail space was 3,547,000 sq m. By the end of the year 20 new shopping centres are to be completed. The intere72
Residential real estate91
Housing construction is expected to mark a high growth in 2008. Russia's deputy minister for regional development announced in August 2008 that completed residential units rose by 2.9% on the year to 21.7 million sq m. However, growth rates of constructio91
A total of 50.6 million sq m of new residential space was completed in 2006, an increase of 16% year-on-year and over 66% compared to 2000. The average marketing price of new dwellings stood at USD 1,500 per sq m.91
The prices of residential property in the Russian cities with a population of over one million increased by around 30% in the first half of 2006. Apartment prices in Moscow rose by 50.5% to USD 3,359 per sq m in the first half of 2006. According to industr92
In 2007 the tough competition and lack of high-quality retail space in Moscow led to a rental price hike. The market was also influenced by the entry of large hyper- and supermarket chains such as Carrefour. Major developments also occurred in the clothing112
Finnish YIT is the largest foreign investor in residential construction in Russia. The company's construction unit had an operating margin of 11.3% in the first six months of 2006. YIT targeted a 10% market share in St Petersburg, 5.0% in the Moscow region137
Experts forecast supply of office and hotel real estate to continue lagging behind demand, especially in large cities, due to a lack of suitable sites. 201
Experts forecast rapid retail development to continue in Russia's big cities over the next few years and the quality of facilities is expected to increase. 204

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