A case study that exemplifies that growing construction opportunities in Belarus:
The opportunities for investment in the construction and infrastructure sectors in Belarus are exemplified by the ambitious Minsk City development.
The US $7 billion project will see 318 hectares of Minsk turned into a new ‘city within a city’ with thousands of new apartments built, along with offices, schools, hospitals, shops, parks and leisure centres and supporting infrastructure.
The project is led by Russian construction firm ITERA, advised by real estate consultancy Colliers International, and is offering annual returns of 35% to investors. ITERA expects to provide up to 20% of the US $7 billion with its own funds and has started to clear the sites in preparation for construction while talking to banks to raise more money.
When Minsk City is completed, due in 2020, around 60,000 people are expected to live or work in the development.
The government has supported the project by waiving contract fees, profit tax until 2013, and import taxes on equipment and materials.
These initiatives are a sign of Belarus’ desire to attract foreign investment, said Sergey Keeselev, director of Minsk City, “Over the past few years the government has been very attentive to each investor and has worked individually with them to meet their specific needs,” he said.