In H1 2025, Russia’s real estate market saw a major shift in capital allocation, with commercial real estate capturing 78% of total investment—up 11 percentage points from last year. Meanwhile, residential development dropped from 33% to 22%, driven by high mortgage rates and reduced buyer appetite.
The office segment rose to 36% of total investment, and warehouses climbed to 24%, while hotel investments increased to 5%. Retail held steady at 12%, but overall investment volumes declined 12% YoY, totaling 325 billion rubles.
Despite the commercial shift, total real estate investment fell 24% YoY to 417 billion rubles, with housing investments plunging 49% to 92 billion rubles. According to Irina Ushakova, senior director at CORE.XP, “High interest rates in the economy continue to affect capital sentiment… there is a redistribution of capital in favour of development in commercial real estate, where an increase of 44 per cent was recorded”.
Foreign sellers accounted for just 7% of transactions, down from 13%, indicating that 93% of investment activity was driven by Russian entities. Meanwhile, collective investment platforms like Lendly are gaining traction, offering new instruments for investors unable to purchase full housing units.
