The fallout of the financial crisis in Russia has resulted in a significant amount of property falling into the hands of the country’s leading banks. ‘Banks are increasing their grasp in the property sector,’ said Charles Boudet, managing director of Russia and CIS at Jones Lang LaSalle in Moscow. While Boudet stated that banks have the option to flip and sell the properties they foreclose on, the current market situation has stalled transactions. A more likely consequence will see the banks holding on to the assets, including providing them refinancing when necessary rather than offloading property for low prices. ‘Banks don’t want to take a hit on their books,’ Boudet added.
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