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Investor Guide to Europe 2014
With an invested stock of EuR125bn, Russia is the
eighth largest market in Europe. Given the size of
the market its total stock is estimated to be well
over EuR900bn. The Russian market has not been
impacted by the financial crisis, with its stock
continuing to grow year-on-year, and has more than
doubled over the last five years.
Market activity has been dynamic, even during the crisis, and
recorded one of its strongest levels of activity in 2013, which
saw some trophy assets sales in both the office and retail
markets, often due to international capital.
Private property funds and rich private investors dominated
the commercial real estate equity market, whilst commercial
banks are the main debt providers.
Moscow sits alongside other global cities such as new
York, london, Paris, Shanghai and Tokyo. It is therefore not
surprising that the majority of investment activity is focussed
on Moscow, largely due to the size of its office stock (13 million
sq m at the end of 2013).
Quality shopping centres with high-standard concepts and
tenant mixes are going to appear in Moscow. This is likely to
stimulate investors’ appetite for this new kind of asset.
Despite a subdued economic outlook for the Russian economy,
institutional investors have not hold back on acquisitions in
this country.
Market sizing
Russia
Europe
Invested stock*
(Total stock)
EUR 125bn
(EUR 900bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
3.6%
(4.0%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 4.4bn
(EUR 3.1bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Moscow (Q4 2013)
office
Retail
Industrial
Current Yield 9.00% 10.00% 11.00%
Min/Max
(10y)
8.00-17.00% 8.50-19.00% 10.00-15.00%
Yield
definition
net initial yield
Source : DTZ Research
RuSSIa
* 2012 figures
