Posted by: Olesya Cherdantseva
Jones Lang LaSalle EMEA Research
Retail investment: Move to regional cities
With the political uncertainties and pipeline limited by projects started before crisis in Moscow, developers and investors are now looking at retail property in regional cities. This is supported by the elevated interest of retailers in regional markets in 2011.
The regional retail market attracted 32% of the Q2 retail investment volumes. One of the factors driving this interest is the increased availability of debt financing, both senior and construction. As a result, investors have access to more liquidity to make new investments or unfreeze projects that had been started before the crisis.
The share of development projects increased in Q2 2011 to 26% of all completed regional retail deals. As there are very few projects and standing assets available for sale in Moscow, we expect greater investor interest in the regional retail investment market.
Read more about Russian retail market in our latest reports: