The 8th Real Estate Financial Forum took place on 1 March in Moscow. AVICA CEO Natalia Tischendorf addressed the investment session.
RD Group was an official partner of the 8th Real Estate Financial Forum, which brings together top market professionals, key players, senior executives, investors, government officials and representatives of government entities every year.
The event comprised four sessions, on investment, government, and residential and commercial real estate. As usual, the sessions took the form of an open dialogue.
AVICA CEO Natalia Tischendorf addressed the investment session, at which experts discussed the current state of the investment market, investment profitability and the commercial real estate market segments most attractive to investors, and the impact of tax changes.
"By our forecasts, the total volume of the investment market in 2017 will be less than in 2016, and will not exceed $3-3.5 billion. In the next 6 months, we expect a reduction in investment activity in the commercial real estate market. Despite the ruble's apparent stabilisation against the dollar, the gap between the expectations of owners and potential buyers regarding the value of assets remains at more than 25 percent. Given the lack of competition between banks, the cost of debt financing in Russia is falling more slowly than elsewhere in the world, and this is one of the key factors holding investors back in decision-making on new projects. At the same time, when constructing financial models investors do not expect lease rates to increase," said the expert.
Also taking part in the forum were Construction, Housing and Utilities Minister Mikhail Men, Moscow Construction Investment Committee Chairman Konstantin Timofeyev, the Managing Director of the Agency for Housing Mortgage Lending, and representatives of UFG Real Estate, Morgan Stanley, Sberbank CIB, Sberbank Asset Management, CBRE, JLL, Cushman & Wakefield, Knight Frank, and more. The event was organised by the Real Estate Professionals’ Association (REPA).