Moscow real estate prices are seeing fantastic growth with many prime locations doubling in value last year and this growth shows no sign of easing.

Moscow real estate prices look set for strong and sustained growth for many years to come and here we will look at why.

With the opening up of the Russian economy we have seen major investment in property, from a number of well known foreign institutions.

For example, a division of Germany’s Deutsche Bank is committed to an investment of $500 million for Russian real-estate investments alone.

The biggest foreign investment in Moscow real estate is the new Great Domodedovo, development near Moscow.

44,000-acres are being developed here for new residential and commercial building recreational facilities – the project is costing around $11 billion. The project is being funded by Limitless, a division of Dubai World, the investment company owned by the ruling family of Dubai.

The foreign investment in Moscow and other Russian cities is not just coming from overseas and major funds are being raised by Russian real estate developers.

For example, Russian real estate investment companies are estimated to have raised around $2.7 billion via stock offerings in 2006 alone and the amount for 2007 is expected to exceed this level.

Moscow’s real estates new found confidence will soon be seen in the Moscow City Towers. Designed by world famous English architect Sir Norman Foster a winner of the Pritzker Prize, the Towers are expected to be the highest building in Europe when completed. In its shadow will be a huge retail, hotel and leisure complex overlooking the Kremlin.