Over the past two years, there has been a shortage of new facilities in the office real estate market. This is due to the fact that, since 2011, many projects were frozen at the stage of receiving the GFZU, their construction was impractical due to high vacancy. The pace of new construction continues to be influenced by the post-crisis situation. According to the results of two quarters of 2018, only 56 thousand sq.m. were commissioned, comparable with last year. There is still a high probability of postponement of the delivery of already declared objects for 2018-2019, to later periods. However, a number of large developers announce about the start of new or resumption of construction of current projects. It should be taken into consideration that the implementation cycle of the object is about 3 years. Therefore, the pace of the introduction of new proposals in the next two years will remain low. The demand for additional office space continues to grow. According to the results of the first half of the year, the total net absorption volume, showing the change in office space occupied by tenants, is 18% higher than the figure for the same period in 2017. The Q2 of 2018 retained high net absorption volumes. However, compared with the previous quarter, the rate of absorption in the past three months decreased by 19% and amounted to 163 thousand sq.m. “If we analyze the supply and demand in the office real estate market, then the greatest activity is seen in class B, where rates vary in the range of 12,000-25,000 rubles for the sq. m per year, including VAT and operating expenses. Tenants still prefer low-cost and efficient offices and literally count every useful meter. Migration to quality occurs only when the current budget of the tenant can afford a higher class of building”   believes ILM managing partner Andrei Lukashev. Source: http://www.rusexporter.ru/material-partners/detail/7220/

Russia has been preparing for the World Cup for eight years. During this time, three modern stadiums were built in Moscow: for Spartak, CSKA and Dynamo. Forbes found out how the economy of each project is arranged and whether they can recoup the investments of investors. .... Difficulties with return on investment can wait for the VTB Arena. The project is being implemented on the site of the historical arena of the Moscow-based Dynamo entirely with the money of the state bank. “Dynamo” was part of it directly by land, and today it retained only 7.7% in the developer of the management company Dynamo. VTB owns 75% minus one share. The remaining 17.3% is controlled by Cyprus-based Eflen Construction Ltd., which, according to Kommersant, is connected with the structures of Arkady and Boris Rotenberg. The total cost of construction is about $ 1.5 billion, of which the stadium and the commercial component each account for $ 750 million. The arena, designed for 27,000 seats, was included in the Russian bid for the World Cup, but in the fall of 2012 it became known that championship games would not be held there. The opening of the stadium itself has already been postponed twice. It was originally planned that the arena will receive the first fans on October 22, 2017, on the birthday of the legend Dynamo Lev Yashin. Then the date was called June 5, 2018, however, and by this time the stadium did not have time to prepare. The commercial part of the project consists of a five-star hotel managed by Hyatt Regency with 298 rooms, office buildings with a total rentable area of ​​56,900 square meters. m, as well as the residential part of 1000 apartments. The office part is now filled only by 13%. One building area of ​​9000 square meters. m in November 2016 bought the structures of billionaire Igor Rybakov. The amount of the transaction has not been disclosed, but a similar building in the complex is now sold at a price of 324,500 rubles per 1 sq. M. m, indicates ILM managing partner Andrei Lukashev. Thus, Rybakov’s structures could pay up to 3 billion rubles. Read more: http://www.forbes.ru/milliardery/362941-gorod-spartaka-kak-zarabatyvayut-na-futbolnyh-stadionah-moskvy

Increasing the base rate of value added tax (VAT) from 18% to 20% will lead to a slight increase in the cost of all processes, both during the construction phase and during the operation of the building, experts say. ILM managing partner Andrei Lukashev notes that the developer’s profitability will decrease by about the same 2%. "It can be mathematically calculated," he says. At the same time, this will not affect the final cost for the buyer, the expert assures, explaining that the developers compensate for the losses by reducing the size of the discount. “We talked with several developers, none of them is going to increase the cost,” Lukashev specifies. Read more: https://realty.ria.ru/news_cre/20180614/1522735563.html