According to the results of the Q3 quarter of 2012, the increase in supply of high-quality office space remains low. The vacancy rate in the Moscow market has grown due to a decrease in absorption during the summer period, while the level of basic rental rates remains almost unchanged during the year.
The pace of new construction continues to decline, the timing of the introduction of an increasing number of objects transferred to later periods. From January to October, the market was introduced 530 thousand square meters. m, which is 45% less than the same period last year.
The net absorption rate over the past three months increased by 76 thousand square meters. m and because of this out of the negative zone. The increase in absorption in high-class facilities and the release of premises in the class B- indicate a continuing trend to improve the quality of occupied space.
The volume of growth in new supply for three quarters reflects a further decrease in the pace of new construction. In just nine months of 2017, less than half of the same period last year was introduced.
According to our expectations, by the end of the year no more than 230 thousand square meters will be introduced into the market. Thus, the total volume of new construction for the whole of 2017 will not exceed 380 thousand square meters. m and again update the anti-record among similar values of the past 11 years in the office real estate market in Moscow.
In the review there are:
The volume of new construction decreased by 37% compared to Q3. 2017
The total amount of new construction for the whole 2018 will show the minimum values over the past 15 years.
According to the results of nine months, the total net absorption amounted to 463 thousand sq. M. m
The share of unoccupied premises within three months decreased by 0.4 percentage points. and reached 10.3% on average for all classes.
Compared to the beginning of the year, the vacancy on the market decreased by 2.0 pp
304,000 sq.m of office premises were delivered within 9 months of 2016 what makes up less than half of new building supply of the same period last year, creating a new record of low supply for the same period during the last 10 years. The total new building supply won`t exceed 500,000 sq.m in 2016.