MOSCOW. (RIA Novosti economic commentator...
as much as 9.5%. By 2009, profits in this segment may come down to 7% or 7.5%, but even in that case they will be higher than in Western Europe, where commercial real estate investment returns are only 4% per year.Office property is the main aim of direct investments. However, some respectable real estate investment funds also invest in housing. Deals on the primary residential market today make up the bulk of the Russian property market. What is more, potential profits for housing investors are far higher than if they invest in commercial real estate. The average cost of one square meter of floorspace in Russia at the end of 2006 was $1,200, a rise of 50% year-on-year. As forecast by Oleg Repchenko, head of a Moscow-based think tank specializing in property market indicators, the figure will climb to $1,500 per square meter in 2007.
"The experience of world real estate markets shows that the average term for planning property investment is 6 to 7 years," said
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