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In 2006, international rating agencies Standard & Poor’s and Fitch Ratings assigned BBB credit rating to Moscow, ‘stable’ prognosis. This is due to the stable economic growth of the city which is
Russian political, economical and financial centre. During last 5 years, the gross city product has been annually growing by 7.8% on the average.
In Russia about 40% of all foreign investments flows to its capital. The growth of investors’ trust to the market of Moscow commercial real estate caused a drastic growth of investment activity in the first half of 2006
(by $2 billion), a possibility of its $3.5 billion increase by the end of the year is prognosticated, it is proportionate the volume of investment transactions of the last three years.
Growth of investment demand (by foreign investors in the first turn) for office and retail and entertainment real estate, accompanied by a considerable increase in sales price with a lower rent rate increase, caused the decrease
of capitalization rate from 14% (2005) to 12% (the middle of 2006), which is the evidence of an increase of investors’ trust to the market and decrease of risks.
Economic situation and investment climate
In 2006, international rating agencies Standard & Poor’s and Fitch Ratings assigned BBB credit rating to Moscow, ‘stable’ prognosis. This is due to the stable economic growth of the city which is
Russian political, economical and financial centre. During last 5 years, the gross city product has been annually growing by 7.8% on the average.
In Russia about 40% of all foreign investments flows to its capital. The growth of investors’ trust to the market of Moscow commercial real estate caused a drastic growth of investment activity in the first half of 2006
(by $2 billion), a possibility of its $3.5 billion increase by the end of the year is prognosticated, it is proportionate the volume of investment transactions of the last three years.
Growth of investment demand (by foreign investors in the first turn) for office and retail and entertainment real estate, accompanied by a considerable increase in sales price with a lower rent rate increase, caused the decrease
of capitalization rate from 14% (2005) to 12% (the middle of 2006), which is the evidence of an increase of investors’ trust to the market and decrease of risks.
