These statistics are contained in a study by Knight Frank

Investment in the Russian real estate sector increased by 58% in 2016 compared with 2015 to USD 4.3 billion, the Moscow City News Agency said in a statement.

“Investment in Russian real estate reached USD 4.3 billion in 2016, a 58% increase compared with the previous year. As usual, office and commercial real estate accounted for the bulk of investment (27.8% and 28%, respectively). The growth in investment is due to both the stabilization of the market as a whole – the real estate market showed the first signs of pulling out of stagnation in 2016 – as well as the appreciation of the rouble: after declining 27% in 2015, we saw the opposite trend last year with the rouble exchange rate strengthening by 6%”, the statement says.

A substantial portion of investment in real estate in 2016 came from companies with government participation (VTB, Transneft, Russian Agriculture Bank and Housing Mortgage Lending Agency, among others) for which the purchase of real estate was driven by their own business needs and not expectations of obtaining future benefits from ownership. The main factor that motivated owners to conclude transactions for the sale of real estate rights was growing pressure from creditors who are dissatisfied with owners’ inability to meet their obligations.

According to research data, investment in Russian real estate is expected to increase to USD 5 billion in 2017.