Commercial Real Estate Market Report Russia Q4 2012 | JLL

In the real estate market 2012 was a year of big uncertainties: continued waiting of a second wave of European crisis, Russian political risks at the beginning of the year, unclear situation with permits on new construction in the city center and new territories. The market on the opposite has demonstrated gradual growth with some indicators achieving the pre-crisis levels. In 2012 real estate investments showed historically highest results of US $8.7 bln, while Q4 investment volumes demonstrated a 41% growth y-o-y. Take-up volumes in 2012, both in the office and the warehouse sectors, remained on approximately the same levels as 2011.

The 2012 stability was largely due to the H2 growth in the market activity. After the political situation stabilized Moscow occupiers and investors decided not to wait for a second wave of the global crisis and substantially increased their market activity. Interest focused on primarily prime assets or projects looking both at quality and value-for-money assets.

In the investment sector assets with superior quality tenant mix affected the majority of investors. In the office market occupiers flight to quality continued, while the share of decentralized transactions increased. Warehouse built-to-suit schemes and early pre-leases gained popularity.