Real Estate


Q4 2005

Editors' View

  • November 01, 2005
We would like to kick off the final issue of Real Estate Quarterly in 2005 with a warm welcome to Russian realty players abroad — this time those joining us at the MAPIC retail realty exhibition in Cannes, all of whom we wish an interesting and fruitful visit.

News In Brief

  • November 01, 2005

Talking Global Trends

  • November 01, 2005
Rosemary Feenan and Nigel Roberts, European realty specialists at Jones Lang LaSalle’s London office, came to Moscow in July to give a presentation on the global trends — economic, demographic, political, architectural, technological — that are going to drive Moscow’s future development. Edmund Harris talked to them to find out more about how Moscow shapes up compared to other mega cities worldwide, where it’s going and what the future holds in store.

Moscow Makes Its Mark Abroad

  • November 01, 2005
Moscow City Hall took a bigger, more sophisticated show on the road to this year’s ExpoReal in Munich on Oct. 10-12 in an effort to play up the city’s investment potential at one of Europe’s largest real estate conferences.

Facilities Management

  • November 01, 2005
In recent years there has been a major growth of the residential and non-residential realty market in Moscow and large Russian cities. There is much talk about high levels of professionalism in the Russian market. But there are also sectors which give more of an impression of a market still at an embryonic stage. Such is the range of companies offering a complete package of building operation services — what is known as facilities management.

Millions for Sports

  • November 01, 2005
Hundreds of millions of dollars are pouring into world-class stadium and arena projects, in a giant push to rejuvenate the country’s sporting infrastructure after decades of neglect.

ThereТs Money in Class C Offices

  • November 01, 2005
Class C offices constitute the largest and most enigmatic sector of the commercial real estate market. Nevertheless, occupancy rates are soaring. Scanty supply forces Moscow’s small businesses to content themselves with rooms in Soviet-era research institutes and basements. Although the low-cost office sector still has unoccupied and potentially lucrative niches, few developers risk those kind of projects.

The Lowdown on Investing in Russia

  • November 01, 2005
With eight years’ experience on the Moscow market, Dr. Holger Mueller, Chairman of the Real Estate Committee at the Association of European Businesses, tells us all there is to know about investing in Russian real estate.

Latest Retail Trends

  • November 01, 2005
In the 2005, the retail property market continued its intensive and systematic development. The total supply of retail space in professional retail properties (see Table 1) has grown by almost 164,000 square meters (GLA), having reached about 1,100,000 square meters. The realization of other significant projects, which are expected to be completed by the end of the year (see Table 2) continues. Despite the rising cost of project realization, stable rental rates, high demand for retail space in professional shopping centers and moderate competition still allow investors to reach attractive yield levels. This yield appears to be the highest of all the segments of the Moscow commercial real estate market and the trend is further evidenced by the increasing number of new retail development projects.

Better Product, Higher Yields

  • November 01, 2005
A new breed of shopping center developers is quickly emerging in Russia: Unlike the previous generation, they are increasingly interested in delivering investment-grade, Western-style products to the market. Until very recently, local developers were chiefly seeing shopping centers as income-producing assets, but gradual yield compression and overall maturing of the market is forcing them to start looking at their projects from the seller’s point of view.

Kazakh Promise

  • November 01, 2005
With a GDP growth of around 8 to 9 percent per annum for the last 5 years it is not surprising that Kazakhstan has enjoyed a significant construction boom in parallel. Wherever you go across the 11 different regions or oblasts, on entering a regional capital you will see a similar skyline of cranes, active construction sites and ‘beehives’ of building workers often working on round-the-clock shifts before the severe winter weather arrives.

City Development Plans

  • November 01, 2005
The St. Petersburg city government has approved a list of investment projects the authorities consider strategically important. Each project will be overseen by a personal manager appointed by the city’s committee for investment and strategic projects, or KISP. Nikolai Asaul, deputy head of that agency, says: “It is logical that major projects in which the city government is interested should be given more attention.”

What's up?

  • November 01, 2005

News in Brief

  • November 01, 2005

Appointments

  • November 01, 2005

International Property Hot Spots

  • November 01, 2005
Though a market that has only gained notice in the last two years, realtors say demand for foreign real estate has skyrocketed. In 2004, Russians spent over $7.5 billion on buying property abroad, according to realtor estimates.

Exclusive Office Furniture

  • November 01, 2005
As the Russian economy becomes more stable and companies report higher profits, more firms are expressing an interest in exclusive office furniture, focusing on interior items by world-renowned designers.

A Quiet Revolutionary

  • November 01, 2005
The model of a boxy, slightly clinical-looking apartment block might not have been a crowd puller at this year’s ArkhMoskva architectural exhibition — heaven knows, what with world-famous architects like Zaha Hadid talking to packed lecture theatres and all sorts of outlandish fantasies and installations on display it would have had its work cut out trying to compete with them. But unlike a lot of things at ArkhMoskva, this building is actually going to get built. And when it is built, it is going to give architects and developers enough food for thought to last them for a long time yet.

What Is or IsnТt in A Name

  • November 01, 2005
A home for heroes of our time ... What would it be? Such is the thought-provoking question posed by an advertisement that first appeared earlier this year for an elite housing complex in Moscow. The reference to Mikhail Lermontov’s novel is inescapable and therefore, one assumes, deliberate.