By Andreas Schiller

Russia is becoming more of a presence – also at EXPO REAL in Munich. Interest is no longer just in Moscow; international investors are increasingly discovering other locations.
The Topic at EXPO REAL 2007  Monday, 8 October 2007  INVESTMENT LOCATIONS FORUM Hall B3; 12.00 pm – 12.50 pm Real Estate Investors Guide: Russian Federation For detailed information on the programme click here

The statement, that the overall development of EXPO REAL and its respective yearly event organisation reflects what is going on in the real estate markets, is often heard. The statement is completely true for the real estate markets of the Russian Federation and the international attention they receive. First, “just” City Government of Moscow, with its former “Land Committee” and a small stand at the international exposition for commercial real estate, took part in the event. Shortly thereafter, City Government of Saint Petersburg joined.

After a while, the stands got larger – Moscow was the forerunner –, because more and more public institutions and private companies presented themselves in Munich. After that, more cities and regions joined as exhibitors and visitors.

At this year’s EXPO REAL, Moscow’s presence will be unavoidable with its 14 exhibitors. Saint Petersburg will have a stand that is meanwhile growing as well. Moscow Region (Moscow Oblast) and the Russian cities Yekaterinburg and Kazan as well as Tyumen will also be exhibitors. Companies active throughout Russia and beyond, such as Renova Stroygroup or RIGroup finally round out the annually growing spectrum.

This development reflects well the perception of the Russian Federation in the international real estate industry. Interest roughly ten years ago was mainly in Moscow. Some pioneers dared to go to Saint Petersburg. Meanwhile, not just the outer regions of Moscow, but also many others of the numerous million-resident cities of Russia, next to the two largest cities in the Russian Federation, are getting more attention. It has not just rested at expressions of interest and market research. The many and overall annually growing real estate investments demonstrate the trust and dependability that local and international players are putting in Russia’s real estate markets.

The youngest and perhaps most spectacular example of this is the largest single investment of the Austria ImmoEast to-date: the purchase of the shopping centre GoodZone in Moscow. With 146,000 square metres of space and a total investment sum of roughly 450 million Euros, GoodZone, which should be completed by the end of 2008, is one of the largest retail projects in the Russian capital.

These figures match the dimensions of Moscow and the Russian Federation. After all, more than ten million people live in the capital of – with roughly 17 million square kilometres – the largest country in the world. In the secondlargest city, Saint Petersburg, there are more than 4.5 million residents, in Yekaterinburg and Kazan, there are over a million. These are just the official stats. In total, Russia includes 15 cities with more than or nearly one million residents, as well as 25 cities with more than or nearly 500,000 residents.