(MENAFNEditorial)
While we believe that there is significant potential in the long term in Russia's commercial real estate market in the short term political and economic concerns will limit investment and growth in the sector. A history of undersupply has pushed rental rates up and Moscow in particular has high rental rates something we believe will continue for the foreseeable future.
Slow economic growth at present with GDP growth only expected to reach 2.7% in 2017 will limit investment in commercial real estate in the medium term. Meanwhile consumer and business confidence have both been dented by rising inflation and interest rates which will have an impact on demand for and investment in commercial real estate. In international terms the ongoing crisis in Ukraine and rouble volatility has led to investor uncertainty and although we do not expect interest to dry up we do expect to see some caution which could reduce demand and delay projects. However in the longer term a history of significant undersupply across the market and a notable lack of grade A space provides significant scope for development across the country in all three sub-sectors. This will be augmented by economic development in the regions and demand from Russia's rising middle classes.
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Over the long term the rise of the middle classes with their increased spending power will provide particular scope for high quality retail real estate. Opportunities for industrial real estate development will particularly be found in the warehouse sector which is severely underdeveloped and will be boosted by increasing retail networks. Meanwhile new business areas in the major cities particularly in Moscow and St Petersburg are expected to be increasingly outside the city centres providing significant scope in terms of space along the lines of the Moscow-City development.
Moscow is the centre of activity in the Russian commercial real estate market. Many Russian firms have their...
The Russia Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Russia Real Estate Report provides industry professionals and strategists sector analysts business investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Russia.
Key Benefits
* Benchmark BMI's independent real estate industry forecasts for Russia to test other views - a key input for successful budgeting and strategic business planning in the Russian real estate market.
* Target business opportunities and risks in Russia through our reviews of latest industry trends regulatory changes and major deals projects and investments.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI's key industry forecasts views and trend analysis covering real estate and construction regulatory changes major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the real estate sector and within the broader political financial economic and business environment.
Market Overview
Overview of the real estate sector including analysis of existing/planned real estate developments and emerging industry trends in the office industrial and commercial sectors.
Market Analysis
Features detailed city-level data and analysis on rental prices yields contract terms and real estate availability with separate chapters covering the office retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)
Business Environment Rankings
BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors construction companies and financial investors) in the regional real estate market.
The rankings methodology makes sophisticated use of over 40 industry economic and demographic data points.
Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
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