The sustained downward shift in profits across most of the developed markets has sent many investors seeking higher returns in new markets. Despite the higher risks and some uncertainty, the Russian real estate market in general, and Moscow in particular, remains one of the most attractive in Europe.
The real estate market is one of the fastest growing segments of the Russian financial sector. This growth is fuelled by rising real wages, increased consumption and a booming mortgage market. There is an increasing demand for all property types: retail, hotels, industrial, residential and office. But, like in other European countries, the local market cannot satisfy this demand. This creates tougher competition for real estate companies. They face an intricate jigsaw of challenges and opportunities. Growing transparency, raising capital, appropriate tax and legal structuring, efficient management and operational structures is what real estate companies should focus on. Those who have a clear strategy and can meet these challenges could achieve great results.
PricewaterhouseCoopers has a network of specialists comprising global knowledge with local experience who can help investment managers and real estate companies to turn challenges into opportunities in key areas including governance, risk management, financial reporting, raising capital and business development strategies.
