Despite the negative influence of macroeconomic trends, the office property market in Moscow has remained stable for two consecutive years, according to a new report.
In 2012 it has experienced high demand, good supply and stable office rents, says the latest office sector report from commercial real estate services firm Cushman & Wakefield.
New office development is keeping to a similar pace to 2011, with more than 50 office buildings with total area of 650,000 square meters being completed.
More than 1.8 million square meters of office space is said to be on stream for delivery in 2013, but according to Cushman & Wakefield it will be more likely around 600,000 square meter as about 70% of projects that are announced will actually be constructed but not operational.
The firm expects Moscow City Business District to increase its share of the Moscow market with eight out of 10 the largest office buildings planned for delivery in 2013 located there or nearby.
Projects in Moscow City account for almost 40% of stock to be delivered in 2013, among them Eurasia Tower and Mercury Tower. Another landmark office complex to be delivered in 2013 is White Gardens in the Belaruskiy submarket.
According to Cushman & Wakefield forecasts, more than two million square meters of office space will be leased in Moscow in 2012. The market experienced tenant activity slowing down in the last few months that has influenced the overall year results. But it pointed out that this figure still slightly exceeds the results of 2011.
This article is copyrighted by Property Wire - Premier global property news service