In Q1-Q3 2017 real estate investment volume amounted to $ 2.5 billion 35% of which accounted for Q3 2017. Thus, this indicator decreased by 27% compared to Q1-Q3 2016.
Foreign investors activity is increasing on the Russian market. In Q1-Q3 2017, the volume of investment transactions involving foreign capital increased 4.8 times compared to the same period of last year and leveled at $562 million that is 24% in the structure of investments, against 3.4% in January-September 2016.
Investment activity beyond the Moscow region was formed primarily by investment acquisition in St. Petersburg real estate market. Despite the much lower investment volumes compared to the Moscow region, in Q1-Q3 2017 the share of St. Petersburg and the Leningrad Region in investments structure increased up to 24% compared to 10% in the same period of 2016.
Capitalization rates in all segments of commercial real estate have adjusted compared to the beginning of 2017. The compression occurred due to Central Bank key rate reduction and real estate rental flows stabilization.