Support The Moscow Times!

Moscow Commercial Real Estate Construction May Fall Threefold

Russia's economic slump will see the supply of new Moscow retail and office space drop significantly from 2016, commercial real estate firm CBRE said in a report.

Moscow developers will likely build no more than 1 million square meters of office space and only half a million square meters of retail space over 2016 and 2017, the report said, adding that office vacancies could reach up to 3 million square meters by the end of this year.

CRBE predicted that the flow of new offices and warehouses onto the market in 2015 would rival last year's figures — the highest since the 2008-09 economic crisis — as the projects now coming on line were begun long before the ruble's fall of over 40 percent to the U.S. dollar since last year.

Moscow will get 1.4 million square meters of office space this year, the same as it built last year, and 630,000 square meters of retail space, compared to 703,000 in square meters of new retail space last year, the report said.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.