Commercial real estate market in Moscow

Market sale of commercial real estate in Moscow in April 2008 from the consulting company, Russian Research Group. The main characteristics of the fourth month of 2008 include: a significant excess of most major indicators of March; obvious accumulation of objects in conditions of serious complications from their sale, a record high value of the index as the average duration of exposure of objects on the market, the emergence of a significant number of new facilities, which occurred despite the expectations of weighted average prices for commercial property, the accumulation of market quality and expensive shopping area of ??low objects, located within the Garden Ring, Moscow's commercial real estate: records with a question to the experts RRG, in April, the volume of supply in the market buying and selling real estate in Moscow is much increased. Many indicators have reached record levels of late 2007. In particular, the total value of all the objects on display in April has increased relative to March by 27% to $ 12.6 billion, has grown up and the number of proposed sale of objects: in April it on the market exhibited 1.229: not only is 13% above the March figure but almost a record number of objects on display for one month (more is offered only in October 2007 - 1.245). The physical volume of the proposal in comparison with March, rose by 23% - in April, the total area of ??the exhibited objects amounted to 2.11 million square meters. m. If we consider the period from April 2007 to April 2008, it is worth noting: the number of objects offered for sale has increased by 18%, the growth of their total area amounted to 16% increase in the total cost - 62% increase in average price - 40% . In light of the far from perfect international financial situation is so high in themselves lead us to certain conclusions. General Director of Russian Research Group Denis Kolokolnikov stressed that "since February-March, commercial real estate market in Moscow a trend of accumulation of objects, since they sell for a total of an unstable situation on world financial markets, it becomes increasingly difficult. So, if we consider the area on display in the capital market in March, most of them continued their exposure, and in April. The share of retired facilities for the area had only 19%, while that in March 2008, the figure was 24%, while the average for the year 2007 - about 30%. " The significance of this figure, the average duration of exposure sites, grew throughout April and the end of the month has already exceeded 120 days. This is a record figure for the whole period of monitoring. New objects are changing picture of the market deserves a separate discussion topic appears on the market for a new, not previously exhibited objects. On average during April for a week on the market came out 46 "new products", which is even larger than the average weekly figure of last year. And in April, appeared on the market two new large object whose value exceeds $ 100 million: a business center class "A" next to the station. metro Pushkinskaya (worth $ 112 million) and a new administrative building, located on St. Danilov. (Worth $ 102 million). The emergence of a significant number of new objects, of course, was one of the reasons for high rates of overall market in the month of April. Moreover, thanks largely to the "News" at 8% increased the average area of ??the exhibited objects, which in April was 1.720 square meters. m. But this figure is 2% lower than in April 2007, so that in global terms, this characteristic of the market is still in the red, but not in the black. Prices surprises Contrary to all expectations, in April has been fixed weighted average of prices for Moscow real estate market. According to specialists Russian Research Group, sellers of commercial real estate, despite the difficulties encountered with the sale of objects from a crisis of liquidity in the banking sector, in no hurry to lower prices, given the weak dollar and market lag. In light of this situation can be characterized as unstable. The market is a large number of objects, so if at the financial arena events will evolve in an unfavorable scenario, we can expect lower prices. In general, the April increase in average prices for commercial real estate amounted to 3%, reaching $ 5.955 / sq. m. A year (c April 2007 to April 2008) prices by 40%. However, analysis of the situation in each market segment can draw a very mixed picture. Thus, in comparison with March, the largest increase in average prices showed the premises free use and commercial premises in the city center (mostly because of improving the quality of proposals), and moderate growth - a segment of office real estate. In this case, virtually halted the rise in prices for retail space located on the outskirts of the city, and the average prices for production and storage facilities actually fell by 1%. For several months have seen steady growth in rental rates for commercial property in Moscow. April was no exception: rental rates grew by 2% and are now at around $ 964 / sq. m per year. It's worth noting that, according to the monitoring RRG, the number of premises offered for lease, 22% higher than the number of premises offered for sale.