The share of real estate transactions by foreigners in Russia has fallen 10 times

We are talking about investment transactions in commercial real estate. In the first quarter of 2024, the figure was 8%, in the same period of 2023 – 80%. The main reason is due to the fact that most of the asset owners have withdrawn from their Russian portfolios

The share of transactions with foreign assets in the total volume of investments in commercial real estate in Russia in the first quarter of 2024 amounted to 8% (9 billion rubles) against 80% (95 billion rubles) in the first quarter of 2023. Such data is contained in a study by analysts of the Commonwealth Partnership (CMWP) received by the editorial board.

Experts note that the trend in the investment market is increasing towards a decrease in the number of transactions with foreign assets. In the first quarter of 2024, their share was only 8%. “For comparison, in 2023, 66% of transactions were in foreign assets, in the first quarter of 2023, the volume of such transactions was 80%. Thus, at the beginning of 2024, their share fell by 72 percentage points compared to the same period last year,” experts cite the figures.

The main reason for the decline in the share of foreign assets is due to the fact that most of the asset owners have already withdrawn from their Russian portfolios. In addition, the exit conditions also changed, which could negatively affect the willingness of some of the remaining assets to exit, CMWP explained.

According to analysts, the amount of investments in commercial real estate in Russia in the first quarter of 2024 amounted to 112 billion rubles. Calculations were made on the basis of data on concluded transactions for investment purposes. The purchase of objects for the purpose of redevelopment for a residential function is not taken into account in the calculations, as well as purchase transactions. The leader in the number of transactions was commercial real estate, which accounted for 73% of all transactions.

Decrease in the share of investment transactions with foreign sellers in the real estate market (including residential real estate) Russia is noted in IBC Real Estate. According to their data, for the first quarter of 2024, the figure was only 6%, while by the end of 2023 it was at the level of 30%. For example, the sale of 14 Mega shopping centers from Ingka Centers, which took place last year, became a record in the history of the market in terms of area and cost.

By the end of 2024, the share of investments in real estate by foreigners in Russia may amount to 15-18% of all investments. This is due to the fact that the trend towards the exit of foreign sellers, which began in 2022, is now on the decline, IBC Real Estate explained.

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