Continuing our coverage from Tuesday's sessions at MIPIM 2011, this time with the outlook on investment in Russia:
Before the recession, foreign funds flowed into Russia into all types of investments in all regions of the country. However, once the downturn began, foreign capital slowed to a standstill. A phenomenon not unique to Russia, this was true throughout Europe with capital “returning to its base.” The struggle now is convincing investors to once again consider Russia.
Regions throughout Russia are actively trying to attract investors. Local governments have made improvements in areas ranging from infrastructure to simplifying the zoning approval process.
And some foreign investors are beginning to return to investments in Russia, sharing a belief and a history of investing in Russia. Such knowledge of the market and of the investment process in Russia is a competitive advantage which gives them an edge in completing transactions now.
Market conditions in Russia are improved today over what they were two years ago, making it seem like a more prudent investment target, but questions remain that will likely keep larger players on the sidelines for now.
For more coverage from the day's sessions, bookmark the Wisconsin Real Estate Viewpoint and visit MIPIM World.