The requested news item does not exist. Please return to News
Smaller cities account for over 50% of new supply
Moscow, 21 January 2014 – The Russian retail market saw the highest quarterly level of completions in seven years in Q4 2013 at more than 800,000 sq m, according to Jones Lang LaSalle.
This result has been mainly due to openings in cities with populations of less than 1m people. These cities received 56% of new supply in Q4 2013 compared to 44% for the whole of 2013. St. Petersburg received 21% of Q4 2013 completions, whereas millionniki cities received 14% and Moscow and Moscow Region received 10%.
Completions breakdown in RussiaSource: Jones Lang LaSalle
Tatyana Kluchinskaya, National Director, Head of Retail Department, Jones Lang LaSalle, Russia & CIS, comments: “Despite the very high level of completions in Q4 2013, the annual level of completions for 2013 was in fact below the levels recorded in 2012 and 2008. Globus shopping centre in Yekaterinburg, Planeta SC in Ufa, Aquarelle SC in Volgograd, Kristall SC in Tyumen and Aura SC in Yaroslavl were among the largest schemes that completed. As of the end of 2013 total stock in Russia almost reached 16m sq m. Developers have announced a pipeline of about 2m sq m in 2014. If all the announced projects are completed on time, the Russian retail market will see a record completions figure.”
Retail completions in RussiaSource: Jones Lang LaSalle
Moscow accounts for about one third of Russia’s total pipeline. “After the relatively modest level of completions in 2013 (204,000 sq m) the Moscow market is likely to receive a large amount of new supply in 2014,” - reports Kluchinskaya. – “Developers have announced just under 1m sq m of quality retail, although according to our forecasts, completions will be at the level of about 600,000 sq m. However, 600,000 sq m will still be a record figure for Moscow market and will exceed the total level of three previous years”.
Avia Park, Vegas City, Columbus and Vesna are among the largest projects announced for 2014 in Moscow. By the end of 2014 total stock in Moscow might exceed the level of 4m sq m and stock per 1,000 inhabitants might reach 359 sq m. At the end of 2013 this figure was at the level of 306 sq m.
Rents remained stable throughout 2013. The average rent in quality shopping centres was USD500-1,800/sq m/year, the prime rent was at the level of USD3,000-4,500/sq m/year. The vacancy rate remained at the level of 2.5% throughout the year. In 2014 this figure is likely to increase due to opening of several large projects.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg and Kiev. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.For further information, please visit www.jll.ru
Natalia Kopeychenko, Head of PR
+7 495 737 8000