In the boom years, Russia was one of Europe's largest property markets, with investment volumes of US$8 billion–US$10 billion annually; the figure briefly decreased during the 2008–2009 financial crisis.
However, a downward trend on the property market began in 2014 in sync with the political challenges that Russia is facing as a result of continuing Western sanctions and low oil prices (on average), which has brought about a weakening of the Russian currency.
However, in recent years the Russian economy has stabilised, showing a record-low 3 per cent inflation figure for 2019. The Ministry of Economic Development and Trade expects the same 3 per cent inflation in 2020, which, however seems optimistic in light of covid-19 (the Central Bank of Russia has since updated its forecast, anticipating 4 per cent inflation in 2020).
Reproduced with permission from Law Business Research Ltd.