What’s Moving the Real Estate Market?

Thursday, February 2nd, 15:00-16:30

Over the past four years, the Russian real estate market has evolved from a seller’s market (pre-crisis) into a government market (in crisis years 2009-10) and ultimately into a buyer’s market (2011 and beyond?). Changes occurred in the real estate market paradigm: consumers became more demanding and are prepared to invest only in high-quality objects, while the market clearly lacks them.

However, supply of such objects is not strongly increasing. What is preventing developers from constructing higher-quality and more demanded projects, and how will gradual changes to municipal planning policy, administration and relations with the government alter the situation? Will it lead to a striking gradation of projects (into categories of very good and everything else) and, as a result, the attractiveness of the market overall?

How should one finance the construction of objects (with shareholder/borrowed capital, mezzanine financing, mutual funds, etc.), the pros and cons of each, and perhaps the most pressing questions today – where to find a final purchaser and what must be done (including by the government) so that institutional demand for real estate appears in Russia, which would give developers the ability to monetize constructed objects and stabilize demand?

As a result of the discussion, the participants should answer the questions: should one invest in real estate, and if so in what segment and with the aid of what instruments?

 
 
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