Read in journal:As soon as investors and developers started breathing more freely after the crisis peaked, and got themselves ready for new challenges, many of them started saying that today it makes sense to invest efforts and money only into residential real estate, which, unlike offices and warehouses, is always in demand by consumers. Residential property, at the initial stage of the crisis, turned out to be the most promising segment of the market from a commercial point of view.
Many facilities are generating smaller profits these days. Unsurprisingly, the owners are thinking about changing course. Under the conditions of a crisis, and a shortage of resources there are two ways out – to wait quietly until the hard times pass, or on the contrary, to restructure business right away. In this case, a step towards renovation often implies extremes – the choice between improving the quality of the facility or switching to the profitable, but troublesome and non-prestigious "market format".
All players of the construction market are heatedly debating a number of legislative initiatives called to improve the situation in the area of public regulation of the construction industry in Russia. Too many administrative hurdles impede the developer during the entire process of delivering an investment-construction project – from acquisition of titles to land earmarked for construction to the commissioning of a finished project to registration of freehold titles. However the construction market participants are encouraged by the program of refining public regulation in the sphere of construction anticipating its actual fulfillment.
According to an increasingly popular belief, the worst is already behind for the Urals market. They’ve already groped for the bottom which is firmer than in the neighboring regions – this opinion is uttered louder with each passing week. Do players of the Urals market really feel confident at present?
If you want to make money without advertising, then you should be a Royal Mint. You can build the most beautiful business center in the world, but if nobody knows about it, you would not be able to lease a single square meter in it. When the market was booming, many lease contracts were signed long before the end of construction. Property owners were using a simple set of tools to successfully promote their property, namely outdoor advertising and media advertising. Today the whole situation has changed as we are having a tenant market, so the property owners need to analyze efficiency of all existing advertising tools. In some cases, they even have to create new promotion mechanisms in order to lease or sell their property.
A bottom of the crisis has been reached, the rental rates have stabilized. In some high-quality sites in prime locations of Russia's capital, the rates resumed growth. Investors are looking with interest at the Russian real estate market; some of them have signed deals. Where would the market further go? When would the banks start financing developmer projects? What investors are willing to invest in? Are there any prospects for financial leasing of real estate in Russia?
What is happening in the land market today? What are the possibilities for land use? What will the new amendments to the legislation bring to the market? These and some other questions were in the spotlight of the III sectoral conference of the land market participants.
Our cities are generally ill equipped for a comfortable life. They lack developed infrastructure, have ugly architecture and polluted air, to say nothing about the fact that we often spend half a day in traffic jams. The topic of urban reorganization was in the spotlight of the second Moscow Biennale of Architecture and the international exhibition called ARCH-Moscow 2010 that was held on May 26-30 at the Central House of Artists.
I came to Russia in August 1997. At that time we had involuntary conscription in France but I had a choice: either serve 10 months in the army or work 16 months for French firms outside France. I found a job at FM Logistic, a large logistics operator, in Russia. This was a new opening for me and I decided to have a go. This is how I landed in Russia and liked it so much here that I decided to stay. After FM Logistic I worked for Danone as Supply Chain Director in charge of logistics and distribution in Russia. In 2003 Danone sent me to Germany where I was in charge of production, logistics and internal operations. They have a very big office in Germany and Germans love yoghurts. In 2006 I was offered a job at Jones Lang LaSalle in Russia and I decided to go back to this country. I’ve been living 12 years in Russia and have three children and a Russian wife. The weather is nice here and there’s plenty of sunshine…
CB Richard Ellis predicts that in 2010 Moscow will be one of the most active investment markets, competing effectively with markets of Warsaw, Budapest and Prague. By the results of the first quarter of 2010, these cities accounted for about 90% of all investment transactions in the real estate sector.
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