Real Estate


Q4 2006

Editor's View

  • January 01, 1970
Another issue, another exhibition.... The fourth issue of Real Estate Quarterly of 2006 sees us once again at the MAPIC retail realty fair in Cannes, and we’d like to extend a warm welcome to the ever-growing number of delegates here from Russia in a year which is set to break all records for the number of Russian exhibitors. Equally, we’d like to extend our welcome to any delegates who are here looking to do business in Russia.

News in Brief

  • January 01, 1970

Going Up in Moscow

  • January 01, 1970

Retail Sector Overview

  • January 01, 1970
Moscow’s biggest mall, the IKEA-owned MEGA Tyoply Stan, was the most visited shopping center in Europe last year, attracting 52 million customers. IKEA’s second mall wasn’t far behind with over 40 million visitors, according to the owners.

St. Petersburg Retail

  • January 01, 1970
St. Petersburg’s retail market today is one of Russia’s most dynamic. Growing personal incomes coupled with a lack of quality shopping space in the city mean that developers and retail chain operators, both Russian and international, are actively trying to establish their presence on the country’s second biggest market.

Hotels in Mixed-Use Developments

  • January 01, 1970
Since its inception in 1991, the Russian real estate market has built up from the most basic products of individual office and retail space, to now include the more complex formats of mixed-use developments, as newer real estate products are being created on the market. Hotels are prominent in the mix of uses as the hospitality market in Russia continues its complete transformation.

New High-Rises

  • January 01, 1970
Perched over the Semyonovskaya metro station, the Monte Falcone office building stands 16 partially constructed floors tall. When finished, it will feature 35 stories of mid-priced glass-and-steel commercial space.

Office Market Performance

  • January 01, 1970
Continued robust demand for office space in Moscow in Q3 2006 resulted in about 300,000 square meters of gross take-up. The volume of take-up was lower in Q3, compared with 390,000 square meters in Q2. This can be explained by a lower activity level due to the vacation season during the period. Primary market take-up deals were mostly pre-lets, while deals for secondary office space were mainly lease extensions and the expansion of existing tenants in the buildings.

Local Contractors Missing Out

  • January 01, 1970
Russian general contractors are finding themselves squeezed more and more by increasing competition from their foreign rivals. Even though many of them have been given opportunities to tender by international companies, only a handful of them have so far been awarded the key role on a major, large-scale construction project in Russia.

Regional Town-Planning

  • January 01, 1970
Many regional cities are currently running up against the same problem — the general plan for the city is very out of date and drawing up a new plan will take years, yet at the same time the city absolutely has to have a policy on developing sites within its boundaries.

Putting on The Ritz

  • January 01, 1970
The first Ritz-Carlton hotel in Russia is soon going to open on the site of the infamous 22-story Intourist hotel, demolished four years ago by the Moscow city government to improve the architectural quality of the cityscape. Simon Cooper, president and chief operating officer of The Ritz-Carlton Hotel Company, L.L.C., reckons that his company has chosen just the right time to enter the Russian market. In a recent interview, Cooper explained to Vedomosti just how the new Moscow Ritz-Carlton is going to hold its own against the other, already numerous five-star hotels in the city.

Investment Drivers

  • January 01, 1970
Only two or three years ago Russian commercial real estate was largely off the radar screen of the international investment community: The country’s property market was predominantly seen as opaque, insecure and generally underdeveloped across all sectors. Admittedly, the market remains behind its Western counterparts, but the pace of change is breathtaking and Russia is quickly emerging as one of the key real estate investment destinations globally.

Liberalizing Currency Trade

  • January 01, 1970
Over four months have now elapsed since the promulgation of normative acts by the Central Bank of Russia and the Federal Government which abolished several substantial restrictions on conducting transactions in foreign currencies.

Abolition of Construction Licensing

  • January 01, 1970
There is not much time left until January 1, 2007 when the recent changes to the Federal Law No. 128-FZ dated August 8, 2001, as amended On Licensing of Certain Types of Activities (the Licensing Law) introduced by Federal Law No. 80 dated July 2, 2005 (Law 80) comes into effect.

Sochi’s Development Plan

  • January 01, 1970
Russia’s premier coastal resort is gearing up in anticipation of winning a bid to host the Winter Olympics in 2014. City officials and architects have drawn up plans and the city is fast turning into a gigantic building site. Overgrown fields are going to make way for new stadiums and dilapidated back yards will be replaced by new three- and five-star hotels.

News in Brief

  • January 01, 1970

Mongolian Real Estate

  • January 01, 1970
Mongolia, as a serious real estate investment possibility? Surely not, it’s all yaks, steppe warriors on horseback and nomads in felt tents; they probably don’t even have houses yet...

The Most Muscovite of Materials

  • January 01, 1970
The idea that building materials can be arranged according to some kind of hierarchy like precious metals might seem a bit strange at first.

Why Prices Are Still on the Rise

  • January 01, 1970
Average Muscovites are reeling from unprecedented growth in the housing market that has caused apartment prices to double within a year.

Appointments

  • January 01, 1970