Rise of foreign investors’ activity in Moscow office spaces market

Analysts of Knight Frank Company forecast rise of business activity among foreign investors in office spaces market of the capital. This conclusion was made after comparing office realty market of London and Moscow.

Total volume of investing into core London realty in 2010 made up mostly 17 billiard USD. Most activity was displayed by foreign investors while pounds sterling exchange reduced.

The total volume of deals in Moscow made up in this period 4.4 billion USD. In the meantime as a result of demand rise almost twice as many and price rise by 50% capitalization rates reduced by 12% in 2008 year to 9% in 2010 year.

“Thus Moscow realty remains to be attractive for investors and we expect increase of foreign investors activity 2011” – claimed experts of Knight Frank Company.

According to the results of 2010 year rental rates for A-class office spaces made up 1060 USD for a square meter per year. It’s a second index among European capitals after London, where rates of West-End amounted to 1520 USD per year.

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