MOSCOW, Dec 1 (Reuters) - Investment in Russian commercial real estate is likely to pick up next year as a result of economic recovery, a stronger rouble and lower financing costs, two property consultants said.
CBRE and JLL said on Friday they expected investments in malls, offices, warehouses and hotels to rise by around 10 percent to $5.00 billion to $5.25 billion in 2018, while forecasting 2017 investments to be largely flat.
“Amidst a favourable outlook for the key macroeconomic indicators and as financing becomes more affordable and the real estate market recovers, we expect a gradual increase in the volume of investments,” Irina Ushakova, head of capital markets at CBRE Russia, told reporters.
The positive outlook for the real estate sector follows growing signs that Russia’s economy is picking up after two years of contraction.
Consumer demand is expected to be the main driver for Russia’s economic growth in 2018, the World Bank said this week as it raised its forecast for the country’s GDP growth to 1.7 percent from 1.4 percent.
Walt Disney Co opened its first Russian toy store on Friday and announced plans for a further five, while mobile phone operator Megafon said demand for high-end handsets rose in the third quarter as consumer confidence improved. (Reporting by Olga Sichkar; Writing by Maria Kiselyova; Editing by Alexander Smith)