Despite the unstable situation in the global financial markets, which weakened the real estate markets of most countries, positive trends were observed in the Moscow real estate market. This is evidenced by a record increase in the volume of investments, an increase in the volume of absorption of office space and a gradual increase in the level of rental rates.
At the end of 2012, the total supply of quality office space in Moscow reached 13.4 million square meters. m. During the year, was introduced about 524 thousand square meters. m of office space, which was 15% less than in 2011.
The volume of absorption of office space amounted to 724 thousand square meters. m, which is 35% more than in 2011. This suggests that activity from tenants / buyers in the market continues to grow. The average vacancy rate in the market was 11%.
During the year, was introduced 350 thousand square meters. m of office space, which is less than half of the volume of new construction last year. The indicator has reached a record low in the last 10 years on the Moscow office real estate market. Due to the restriction of attracting funding for new projects and the postponement of the commissioning of a large number of objects, in the next two years the market will be replenished mainly by buildings whose market entry was originally planned for 2015-2016.
The total number of square meters of new office space added to the market in 2017 is estimated at 380,000 square meters. Despite the increased growth rates in the last quarter, the total volume of new construction for the year surpassed the volumes of the previous year by only 9%.
By the end of 2013 the overall supply of quality office space in Moscow achieved 15, 2 mln. sq m During 2013 748 thousand sq m of office space was commissioned which is 20% less than at the same period of 2012.
60% of office space commissioned in 2013 is located outside Central District.
The volume of new construction in 2014 reached its maximum in the last 5 years. During the twelve months 1.4 million sq.m. were put into operation.
At the end of 2014 the total volume of net absorption, showing the change of tenant-occupied office space, amounted to 745 thousand sq.m. Under the influence of the economic crisis and geopolitical tension we see a decline in demand from tenants.
This year witnessed a slowdown in new construction. Over the year, 52% fewer office spaces were brought to the market than last year. Due to lack of funding, the construction on many properties was either suspended or postponed; the owners deferred the commissioning of buildings in anticipation of anchor tenants.