Investment in real estate in Russia redistributed from housing to offices

Moscow [Russia], August 1 (ANI/ Izvestia): In the first half of 2025, the Russian real estate market saw a redistribution of investment flows. The share of commercial real estate increased by 11 percentage points compared to the same period last year, reaching 78 per cent of the total investment in real estate. At the same time, investments in residential development decreased from 33 per cent to 22 per cent. This conclusion follows from the research data of the consulting company CORE.XP, which was reviewed by Izvestia on July 31.

According to the study, the largest increase in the share of investments was recorded in the office and warehouse segments -- by six percentage points (up to 36 per cent) and four percentage points (up to 24 per cent), respectively. Investments in hotels increased by three percentage points, accounting for 5 per cent of all real estate investments. However, the share of investments in retail remained the same compared to last year, remaining at 12 per cent, the analysts added.

It is noted that despite the increase in the share of commercial facilities, in monetary terms, the volume of investments in key segments decreased by 12 per cent year-on-year, amounting to 325 billion rubles. Investments in the office segment fell by 10 per cent against the background of a slowdown in economic growth, and in the warehouse real estate segment by 7 per cent due to discrepancies in estimates of the cost per square meter between buyers and sellers. Investments in retail decreased by 28 per cent year-on-year.

"High interest rates in the economy continue to affect capital sentiment, leading to a decrease in total investment in real estate by 24 per cent year-on-year (up to 417 billion rubles. -- Ed.), with a significant drop in the segment of housing sites (-49 per cent, up to 92 billion rubles. -- Ed.) due to lower demand as a result of high mortgage rates. At the same time, there is a redistribution of capital in favour of development in commercial real estate, where an increase of 44 per cent was recorded," the senior director, head of the Investment and Capital Markets Department at CORE explained to Izvestia.XP Irina Ushakova.

In addition, the share of foreign sellers in the volume of investments in real estate was only 7 per cent, which is six percentage points lower than last year. Thus, almost all investment activity (93 per cent) was generated thanks to Russian sellers, the analysts concluded.

In an interview with Izvestia on July 29, Alexander Volgin, founder of the Lendly investment platform, spoke about new instruments for collective investment in Russian real estate. He added that there is an increasing interest in collective investment in real estate in the Russian Federation, due to the high cost of facilities. Many investors seek to diversify their portfolios, but they do not have the opportunity to purchase housing completely. (ANI/ Izvestia)

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