Against the backdrop of high demand, construction activity has increased. In 2019, new construction will exceed the last year’s anti-record by three times. Demand for office premises maintains the record high figure of 2018. In the coming years, a significant decrease in take-up is not expected.
Retail sales growth is limited due to the decline in consumer confidence and fall in real incomes. Consumption is now at a minimum. In 2019-2021, construction volume in Russia will remain at the level of the previous two years. Around 500,000-700,000 sq m of retail space will be delivered to the market annually.
Despite the long-term trend of the vacancy rate decrease and the rise of rental rates in the Moscow region, developers do not show significant interest in speculative construction. In H1 2019, 73% of new construction was built-to-suit projects, and only 27% of new construction was speculative. In the regions, the share of speculative industrial property construction is higher than in Moscow.
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