In Q2 2020 take-up decreased by 29% compared to Q2 2019 and amounted to 345,705 sq. m. The indicator’s decrease is a result of business activity slowdown and costs optimization. A gradual recovery of the market will take place in Q3-4 2020 after the lockdown completion and restrictions elimination in June.
The consumer market sector is one of the most affected by the COVID-19 crisis. It was under pressure long before the pandemic and this year it will increase the decline. According to the official forecast, retail sales and real disposable income will be in the negative zone in 2020 (-5.2% and -3.8%, respectively). Despite the significant growth in 2021 (+4%), the market will be back to the level of 2019 and only show real growth in 2022.
Due to the lockdown in Q2 2020 construction activity in the Moscow region slowed down. However, we expect new construction activity to recover in Q3-Q4 2020. According to our forecast additionally about 430,000 sq. m will be delivered to the market by the end of the year. Despite the economic uncertainty we expect that about 52% of all new projects of 2020 will be speculative. Lack of quality space in Moscow region is still noticeable even in the period of the economic recession.
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