Foreign Real Estate Investors Put Ukraine Deals On Hold

Ukraine sanction fears have prompted real estate investors to put their deals on hold.  This has opened an opportunity for domestic investors.

It is expected that commercial real estate investment will fall this year.  Jones Lang LaSalle has decreased its previous estimate from $7 billion to $3.4 billion for this year, which is a huge decline from $8.1 billion invested during 2013.  

The market share of foreign companies started increasing after the financial crisis of 2008.  It rose to around 30% of all the commercial real estate investments during 2013.  It is envisaged that the share will decline to between 5% and 10% during this year. 

 

Foreign investors may be reconsidering their investments, but it is the same fear that is prompting Russians to send their capital back home – straight into real estate.

There are not many investment opportunities in Russia as the stock market is volatile and risky.  It is only real estate that offers good security and high returns.

New facilities will continue to be developed and Russia may well pass Britain and France as the largest shopping centre market in 2015.