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REMIC | Real Estate Management In Corporations

Regions outpacing big cities in terms of retail property volume


In the first nine months of 2015, the RF wrapped up the construction of almost 40 retail complexes spanning a total rental space of roughly 1 million sq. metres. According to Colliers International, the figure represents a contraction of almost 40% compared to the same period last year, while the number of completed retail centres suffered a 20% decline. Major projects stopped being the primary focus of developers, resulting in an average nationwide drop in properties under construction to 20,000 “squares.”

Just 15 complexes spanning a total area of roughly 250,000 sq. metres opened in all of the third quarter. What’s more, analyst estimates suggest that almost 90% of these new complexes are located in regional cities – in St. Petersburg, for instance, no new properties were built at all. Almost 40% of all such centres are found in cities with a population of under half a million; that said, million-strong megacities saw just 6 complexes go up with a total area of 100,000 “squares.”

According to a survey of the leading fashion-retailers concerning plans for the development of such properties as corporate and retail real estate, the most interesting cities with a population over a million are Novosibirsk, Kazan and Ekaterinburg, while in terms of cities with a population under a million, this distinction goes to Krasnodar, Naberezhnye Chelny and Tyumen.
The surging popularity of Krasnodar is likely due to its high level of consumer demand – the local nonresidential-real-estate market is the most developed not only in the regions of Krasnodar and Stavropol, but in neighbouring republics as well.

However, Colliers International analysts indicate that the regional retail and corporate real-estate market is currently experiencing a slowdown in construction starts and a shift in demand in favour of more attractive properties. In Q4 2015, the construction of 5 regional properties spanning a total area of more than 250,000 “squares” was delayed.