In recent years, property investors and developers have become much more international in their outlook. Property has effectively become part of the global marketplace. In Russia, flexibility is a critical success factor for structuring any real estate investment, and comprehensive due diligence prior to any transaction is vital.
The changes that have taken place in the Russian real estate market over the last few years provided tremendous challenges and opportunities for Russian and foreign investors, construction companies, property developers and the industries that support them. The market was developing beyond recognition since the collapse of the Soviet Union, although the market suffered a major setback following the economic crisis in August 1998 and lately in 2008–2009. Since 2000 until the current financial crisis, with a relatively stable currency the Russian economy was recovering strongly. During that period, the growth of local businesses and continuing expansion of foreign companies in Russia boosted demand for newly constructed high-class offices, manufacturing and warehousing facilities, hotels and retail areas. This growth went along with the restoring confidence of foreign investors; the lifting of Russia’s rating by the rating agencies to investment grade with a stable outlook, was another indication of this process.
Source : PWC