‘RUSSIAN BREAKFAST’ IN MOSCOW

DESPITE THE POSTPONING OF MIPIM, IN THE FRAMEWORK OF WHICH THE EVENT WAS TRADITIONALLY HELD, THE PARTICIPANTS DECIDED TO MEET "BACK HOME" IN ORDER TO DISCUSS THE TOPICS THAT ARE IMPORTANT FOR THEM AND THE WHOLE MARKET.

Vladimir Ivanov, Managing Partner at Spectrum Group, was one of the speakers participating in the strategic discussion “Urban Environment Investment Drivers.”

The risks of stagnation in the face of global challenges were discussed, and the participants tried to predict the course of events and identify growth areas in the present conditions.

Key points:
- Russia is moving toward stagnation and an increase in interest rates;
- The ratio of foreign to Russian investments in the commercial real estate sector is still the same as during the pre-crisis years. However, the market is now smaller than during 2010-2012;
- Russia will be attractive for the foreign investors as a high-risk but highly profitable market, good for including a small part in the investment portfolio;
- The warehouse sector is attractive due to its record low vacancy rates amid the growing e-commerce market;
- The Moscow government will continue to actively develop new territories. These actions are aimed at creating jobs; they represent the development initiatives for commercial real estate, the necessary transport infrastructure, and business incentives, for example tax breaks and free land for production activities.