CBRE Research Department reported the results of H1 2017 in Moscow office market.
The report states that new delivery volumes in Moscow are postponed to the second half of 2017. Vacancy rate in Moscow office market continues to decrease due to almost zero new completions volume, reaching 15.4% by the end of Q2 2017 which is 0.5 ppts lower compared to the 2016 year end and 1.3 ppts lower compared to H1 2016. For the last year vacancy rate decrease has been recorded both in Class A and B office markets: from 19.3% to 18.4% in Class A and from 15.7% to 14.3% in Class B.
Elena Denisova, Senior Director, Head of Offices CBRE in Russia said: "Vacancy rate decrease due to low new delivery volume and stabilized demand both in Class A and B has become the key trend in H1 2017. Meanwhile the lack of new buildings is deteriorating the collapse gradually formed on the market in a 2-3 years perspective, that will seriously affect medium and large-scale business. Current demand is still limited, whilst companies’ activity follows the recovery trend if compared to the preceding year. This activity conversion into the transactions in H2 or its failure will determine potential rental rates growth."