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16.06.2010
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.
01.06.2010
Happiness of well-known heroes of the Russian New Year film became possible only because of typical Soviet-style mass construction of houses-clones, assuming that each city should have such lanes as Builders Street. Today, just as in this film, residential developers often cross out turrets, balconies and other architectural "excesses". The reason for that is that developer happiness now depends only on economy-class housing.
16.05.2010
It seems that the "hottest" period of crisis is over now. Regional companies are once again ready to send staff to Moscow for talks and conferences. Business activity has been increasing, which means that they would occupy hotels in Moscow. Nevertheless, prices for hotel rooms are in no hurry to return to pre-crisis levels. This is by no means bad news as the highest in the world prices for accommodation services before the crisis kept away from Moscow even the bravest travelers who were not afraid of visa problems and the lack of street names posted in English.
12.04.2010
Starting from the first days of the current spring, a new wave of optimism has come to the Moscow warehouse market. Some market players have managed to sign big deals while rental rates have been quite stable for several months. These are the reasons to be optimistic. However, the experts say nothing about new construction projects on the market.
15.03.2010
The first half of 2009 was characterized by a drop in rental rates and increased vacancy rates in retail centers. However, the rent rates have stabilized by the end of the year. Prepared for the worst, retail market participants were pleasantly disappointed – not all catastrophic forecasts came true.
15.02.2010
Having reviewed the results of the first year of the crisis, office market players can finally breathe in with relief, or at least acknowledge that the worst expectations never really came through – the drop in leasing rates and vacancy rates for offices didn’t turn out as catastrophic as forecasted. The predictions for this year are somewhat more optimistic, without however any major recoveries.
16.12.2009
Ufa is an administrative, industrial, scientific and cultural center of the Republic of Bashkortostan. The region’s prosperity is based on developed oil-producing and refining industry. The city was far ahead of average retail parameters typical of other Russian cities and attracted both national retail chains and large Western investors. But the crisis forced all market participants to correct their plans. As noted by experts, the demand for retail and office space still exists, although many players are sitting on the sidelines.
01.12.2009
The market players in Yekaterinburg are still recovering from the shock, having lost all guidelines. Many of them are still following the wait-and-see position. The new business reality is still hard to come to grips with.
01.12.2009
The Moscow hotel market has suffered most among all the large European cities. First evidence of this is huge drops in room prices. However, the reality is that the capital market was significantly overheated – until May 2008, with prices of accommodation services overinflated, like in no other European capital.
16.11.2009
The real estate market that has been quickly developing in Moscow during the recent years, demonstrates record high growth rates, was the first to react to the changes in the economic situation. Today, the retail real estate market is still in the phase of stagnation, high inflation and unemployment. Any market player can easily see that: developers are facing difficulties with financing their projects, trade agents have to deal with decreasing volumes of concluded deals, while the population's purchasing power has shrunk.
30.10.2009
Ranked second in Siberia in terms of population (in excess of 1.1 million) and fourth in the country in terms of industrial output, Omsk is nevertheless regarded as poor cousin in the family of Siberian cities. The regional offices of big companies did not gain a foothold here and so quality office real estate is not in high demand. There’s no need for large logistics centers either. The only segment that had developed at a rather fast pace before the crisis is retail real estate. At the same time Omsk is the center of the Omsk region concentrating around 70% of industrial output and consumption in this particular province. The key sectors of Omsk economy are defense, oil-refining and food industries.
12.10.2009
Voronezh has revealed a considerably strong backbone as it continues working on most of its major construction projects notwithstanding the crisis. According to assessments by certain experts and some key figures, the city has outdone many of the country’s industrial giants. Its diversified economy and an open approach by the local authorities have proven a definite advantage in times of crisis (Voronezh doesn’t rely on any single major commercial enterprise).
02.10.2009
Although commercial real estate developers have not announced any new projects for over a year now, those shopping centers currently under construction will suffice to significantly increase the total supply. At the same time people have gotten over the initial shock of the crisis and retailers are once again looking at leasing retail areas in shopping centers. However only the most successful retail facilities will attract their attention in the nearest future.
27.08.2009
The current economic situation in Russia and the world over dealt a heavy blow on many business undertakings; however development was affected more than other industries. Shopping centers, rising here and there in times of construction boom, were popular among both tenants and buyers. Money was flowing like a river and nobody stopped to think about conceptual development, location or comfort. We developed a methodology for this rating last year but the grades were rather blurry, since competition was actually lacking in the rapidly growing market and it was hard to define the assessment benchmarks.
27.08.2009
As we are entering the second autumn of the economic crisis, the office real estate market participants are not expecting a new rush of potential tenants. The autumn tradition of "counting one's chickens" does not promise developers and investors any pleasant new revelations. However, over the past year market participants have been able to overcome the initial panic and develop new action plans.
26.08.2009
By the time the crisis came to Russia, the warehousing market in Moscow Region was almost saturated. However, global experience shows us that, from the long-term perspective, the Russian quality logistics market is only in its early stages of development. To continue this development, it lacks just one small ingredient – a stable economic environment.
14.07.2009
The street retail format that developed at a time when the market was just burgeoning has since undergone significant changes. Theoretically, street retail embodies everything from the spontaneous open-air bazaars along hidden pathways to the svelte rows of boutiques on Kuznetsky Most and Stoleshnikov Pereulok. This survey will only cover those street level surfaces facing Moscow’s busy central streets.
29.06.2009
The hotel segment, thanks to its low profitability relative to other real estate segments, is usually the last target for investors and developers. For this reason Russia’s hotel market remained far from saturated when the crisis hit and thus may not face the steep decline seen in other segments. At the same time, this segment will likely be the last to see new investment when the economy begins to rebound, and new construction of hotels in Russia and its capital should not be expected in the near term.
29.06.2009
Ufa is the administrative, industrial, scientific and cultural center of the Republic of Bashkortostan. The region’s well-being pivots on oil-producing and oil-refining industries. The city showed faster retail growth rates than the national average and attracted large retail chains and major Western investors. The crisis made all market players correct their plans. But though the market has shrunk substantially life goes on. As noted by experts, the demand for retail and office space still exists although many market operators are playing a waiting game.
12.05.2009
So here it comes, the long-awaited spring that so many market players have laid their hopes upon. Indeed the warehousing real estate market did liven up, as there were several leasing deals signed – be it on the regional level only. However current and potential tenants in warehousing projects in the Moscow region are also holding negotiations with their landlords. The dialogue between the owners and users of warehousing projects is often painful and prolonged due to the different expectations of each party. |
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