Page 82 - RusRPTAug20

declined by 20% to $1.3bn. Investors maintained their interest in housing investment, with housing segment taking a solid 55% share of all deals in 6H20. However, the coronavirus (COVID-19) crisis has brought the commercial centre and hotel deals to an almost a complete halt in 2Q20, while the share of office buildings in total deals dropped from 35% last year to 24%. In the first six month of 2020 Moscow accounted for 82% of all investment in real estate (up by 10%), while Saint Petersburg for 18%. Regional deals stood at only 1%. The share of foreign investors in 1H20 was at 8%, down from 12% seen for the same period of last year, and the share is expected to decline further. Overall JLL expects 2020 to see $2bn-2.5bn worth of real estate investment deals versus previous outlook of $4.5bn.
Secondary market housing prices in Russia in 1H20 declined by 5% year on year across the country and by 9% y/y in cities with over 1mn inhabitants​, VTB Capital (VTBC) wrote on July 7 citing the data by CIAN. Moscow and St Petersburg outperformed the rest of the market, posting 1-2% y/y increases for the period. As reported by ​bne IntelliNews,​ the real estate market during the coronavirus (COVID-19) has mostly been ​supported by the state-discounted mortgages​ distributed by ​large banks​.
9.1.5​ Retail sector news
Russia’s top-10 grocery operators reach 35% market share and e-grocery is to triple in 2020.​ Infoline has presented its update on the Russian food retail market, pointing out that the ten largest players have reached a 35% share in the market (up 7pp since YE19), while online operations surged 4-5x y/y in April-May and the number of e-commerce clients increased 40% y/y to 63mn in 1H20. In 2019, the foodtech market added 67% y/y (RUB45bn), while in 2020 Infoline estimates it to triple (to RUB130bn). E-grocery will eventually
82​ RUSSIA Country Report​ August 2020 ​ ​www.intellinews.com