Foreign Investors In Russian Construction Market

Foreign investors most readily invest in commercial property. They quickly recover (3-4 years) and generate a good profit. Profitability of commercial real estate now stands at 7-11%, depending on the form (shopping centers, warehouses, offices, hotels).

In addition, commercial real estate usually remains developer's active and increases the company's capitalization. Almost all foreign investors invest in objects of class A. The main reason - strict requirements for the project by the shareholders, founders or investors. For the vast majority of foreigners in the first place there is transparency in business. Therefore, the housing market they consider less attractive.

Despite the overall decline in profitability of the warehouse sector, directly in the Moscow region its profitability is twice higher than in most European countries.

The warehouse market is interesting for Western developers and investors, because a large proportion of tenants on it - are big Western companies, such as distributors and retailers. Western companies can choose the storage segment to begin expansion in Russia for the reason that stocks compared with other segments of real estate are simple in design, approval is usually quite simple, and it reduces the time and risks.

While Asian Companies invest in the Russian housing. Market participants do not exclude that in the near future Western investors will follow their example.

According to the consulting company «Jones Lang LaSalle», the share of foreign investment in Russia's construction industry is about 15%. Weekly 6 - 4 foreign companies apply for a license for construction activities in Russia.

The most active companies:

Finnish development company «EKE Group». This company builds a business center Pulkovo Sky.

Austrian concern «Strabag». As reported by «Frankfurter Allgemeine Zeitung» a leading Austrian construction company «Strabag» intends to increase its activity in Russia - great expectations in the first place are assigned to projects related to the Olympic Games to be held in Sochi in 2014.

The French company «Vinci». In Paris  this company and the Ministry of Transport of the Russian Federation signed an agreement for the construction of toll road from Moscow to St. Petersburg.
Turkish company "Casa Stroy". This company may participate in the project for the construction of Orlovsky tunnel in conjunction with the Cypriot company «First Quantum Partners» Today the firm in cooperation with the international hotel operator «Accor» engaged in construction of hotel chains in Russia. Under the plan, they will be 25-30 units in 10 major cities across the country.

Turkish company "Renessas Construction ". This is one of the largest construction and engineering companies in the world. Headquarteres is in Turkey. In Russia the company is implementing projects in Moscow, St. Petersburg, Perm, Voronezh and other cities.
Chinese construction companies. Now there are a large number of projects related to the creation of the productions. 

The British company «Raven Russia». Company «Raven Russia» has 1 million square meters of warehouse space of Class A in Moscow, St. Petersburg, Rostov-on-Don and Novosibirsk, of which 60% are already leased. Approximately 400 thousand square meters are free to rent out in these three regions.

Swedish concern «NCC Real Estate». NCC Real Estate is building the first "green" house in St. Petersburg, which is being built with European energy-efficient technologies and from environmentally friendly materials.