Wednesday, March 17, 2010

MIPIM 2010: Facing the present in Russia

Wisconsin Real Estate MBAs report from MIPIM 2010:

Panel: Russia 2010: Face the Present – Think Long Term

The Russian real estate market has seen a dramatic change in ownership over the last year. Foreign investors have begun to retreat and Russian banks have taken back properties through foreclosures. This has created significant opportunities for well-capitalized Russian companies and foreign investors to purchase foreclosed properties or properties from those wishing to exit the market. Opportunities are also available to purchase struggling developments that have not yet been completed or recently completed developments that can easily be rebranded or repositioned.

In particular, the hotel sector suffered during this crisis; vacancy rates are high as some segments saw over-development during the boom. However, 3-4-star hotels are still under-supplied. Anticipation of the 2014 Winter Olympics in Sochi has already encouraged an increase in projected hotel development.

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