Construction boom approaches the regions - August 2006

In the Russian Federation, economic development has always been extremely uneven and has always favoured the capital city. Today, Moscow and, to a lesser extent, Saint Petersburg are also the prime beneficiaries of the construction and real estate boom which began some three years ago and since then has been steadily gathering speed. Despite the fact that a mere fraction of the potential of the country’s two largest cities has been harnessed, developers and retailers are becoming increasingly eager to invest in Russia’s regions. There, the real upsurge is just about to begin, thanks to the growing purchasing power of the population, the huge demand for housing and in spite of certain bureaucratic obstacles.