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The war boosts the housing market

Real estate investment in the Russian Federation reached a record of 318 billion rubles

Jun 20, 2024 14:30 442

The war boosts the housing market  - 1

The total volume of real estate investment in the Russian Federation from January to May 2024 increased by 21% compared to the same period of 2023 and amounted to 318 billion rubles. “The total volume of investments in Russian real estate amounted to 318 billion rubles, which is a historical record compared to the same periods of previous years,“, analysts indicate.

For 5 months in the Russian Federation, investments in residential real estate objects increased 2.4 times to 110 billion rubles, according to the calculations of the CORE.XP agency. This is the maximum amount for the same period in the last 10 years. The growth was partly due to two large deals for the acquisition of plots in the Kamushki microdistrict near Moscow and on Starovolinskaya Street in the western part of the capital, the company explained. Substantial investments in residential properties are being made by developers who are considering going public and replenishing the land bank for future business expansion.

Investments in warehouses in the Russian Federation increased in five months by 2.6 times to 53.7 billion rubles, in offices by 1.6 times to 93.4 billion rubles. At the same time, investments in commercial space in the Russian Federation in January - May 2024 compared to the same period in 2023 decreased by 47% to 45.2 billion rubles.

The share of Russian real estate sellers increased on an annual basis by 26%, to 84%, while foreign ones decreased to 16%, analysts note. “We look at the second half of the year with cautious optimism due to high interest rates cooling investment activity”, the company added.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE