On 14 December, AVICA CEO Natalia Tischendorf addressed a Christmas Summit, an annual event at which real estate market leaders review the past 12 months and discuss their plans for the next year.
AVICA CEO Natalia Tischendorf addressed the session “Investment expectations and reality: Directions for future growth on the threshold of a new phase of business”.
The experts discussed the state of the commercial and residential real estate market and its attractiveness to investors (including foreign investors), project financing tools, and investment strategies, and shared their forecasts for 2017.
Ms Tischendorf said that, with the ruble stabilising against the dollar, and with conditions in place for a rise in oil prices, investment demand would increase in the commercial real estate market. However, with the economy remaining sluggish, demand from retailers and tenants for retail and office space will not increase.
As a result of heightened expectations from owners, the value of properties on the Russian commercial real estate market is being artificially inflated, which is stopping actual deals.
“This unjustified over-valuation of properties is reducing the potential returns and investment appeal. As a result, the increase in investment demand is not translating into deals,” she said.
The summit was also attended by JLL, Cushman & Wakefield, Colliers International, CBRE, Ernst & Young, Sberbank, and other companies. The event was organised by PROEstate Events with the support of the Russian Guild of Property Managers and Developers, together with the Moscow Investors Association and the Academy of Real Estate.