The flow of investment into Russia dropped significantly

The flow of investments into Russia declined by 3.5 times in comparison to last year

17.Jul.14 12:55 PM
By Ube Salorainen
Photo the-marketeers.com

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The flow of investment into Russia dropped significantly

Due to the uncertain political situation, declining economic development the investment attractiveness of the country also suffers and decreases. This fact is noted by analysts of consulting companies. The consolidated volume of investments in commercial property in the first six months of the this year came to 1.2 billion dollars, for the same period of 2013 the volume of investments amounted to about 4 billion dollars, i.e. in 2014 investment declined by almost 3.5 times.

The hotel industry is very popular for investors - about 35 % (420 million dollars) from consolidated investments pertain to the hotel industry. The number is so high because of a major investor’s purchase of the controlling stock of a company, which owned 13 hotels in Moscow. For the same period last year the share of hotel business, within the limits of the investment property was 5 %.

The experts hope that the investment situation may be improved in the second half of this year, as some investors could take time-out, and if the situation does not worsen, they will close deals to the end of 2014.

However, investors have not seen significant worsening on the market, and even noticed a slight improvement comparing to the year 2013. They mention that there are few transactions, but the total amount on sale is higher than 9 months ago.

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