The total volume of delivered office areas in the first half of 2012 amounted to 200 thous. sq.m., which was much lower than the analogous index of the first half of 2011. This trend may be conditioned by the policy of reconsideration of investment contracts, as well as post-crisis difficulties of obtaining funds. Therefore, the aggregate volume of high-quality office premises amounted to approx 11.5 mln. sq.m. at the end of Q2 2012.
The absorption of high-quality office areas took place at a rather high level during H1 2012—the growth paces of demand for rent and purchase of high-quality premises were high. The volume of vacant supply of offices in “A” class constituted 8-10% and in “B” class—9-11% by the beginning of Q3 2012.
Tenants’ and buyers’ activity in the office real estate market of the Moscow region was high in H1 2012: the total volume of absorption for the past periods exceeded 0.5 mln. sq.m.
55% of all the incoming requests to Blackwood Company were for rent of premises and 45% for the purchase.
The price indices of high-quality office premises segment supply in Moscow remained stable in H1 2012. The growth of rental rates reached expected 5-10% depending on class of office and its location. In the long-term the trend of rates growth, conditioned by low delivery volumes of high-quality office areas will be still relevant.
At the end of H1 2012 the average rental rate in “A” class amounted to $850, in “B+” class—$950, in “B-” class—$420 per sq.m. per year. OPEX for the period under consideration constituted $70-$200 per sq.m. per year for the premises of “A” class; $60-$130—for “B+”, “B-” classes.
During H1 2012 minor increase of new supply of professional retail real estate was recorded in Moscow: about 50, 000 sq.m. of the total area (the rentable area—26, 000 sq.m.). As the result, the aggregate volume of supply totaled 6.1 mln. sq.m., the rentable area of which constituted 3.1 mln. sq.m. at the end of H1 2012. The provision of Moscow population with high-quality retail areas is at the level of 294 sq.m. per 1, 000 residents.
During H1 2012 several international retail operators entered the Russian market: Paul bakery chain (France), Hamleys chain of toys stores (UK), Bath & Body Works chain of body care stores (USA), Mamas & Papas chain of children’s goods stores (UK), Scotch & Soda chain of clothes and accessories stores (Netherlands). All the mentioned retail operators work in Russia according to the franchise scheme and plan to increase its presence in the Russian market in the short-term. Considerable number of international retail operators announced their planned entry to the Russian market.
H1 2012 was characterized by a stable growth of rental rates both in professional retail centers and in the street retail segment. By the results of half a year, the growth of rates constituted 5-7% in comparison with the beginning of the year for the most successful and in-demand REC and retail corridors in the central part of Moscow. It should be noted that at the end of Q2 the growth decelerated due to traditional decline of the market main players’ business activity.
The resumption of rental rates growth is to be expected not earlier than at the end of Q3 2012. The growth of rates and the preservation of vacant areas at the minimal level will be stimulated by high activity of international chains, which plan to enter the Russian market, as well as active development policy of already present international and federal retail operators. By the results of the year the growth of rental rates is expected at the level of 10-15%.
During H1 2012 the supply of hotel rooms in Moscow increased by 253 rooms due to the opening of hotels under the new for the Russian and Moscow markets brands. Thus, during the period under consideration the Mercure hotel (Accor Group) for 109 rooms was launched in Smolenskaya square. The second new property was the hotel under the Russian brand Azimut in the structure of a business quarter “Danilovskaya manufactura”.
In H1 it was reported about the signing of the agreement for the management of the Hyatt Regency Moscow hotel for 297 rooms in the structure of the reconstruction project of “Dinamo” stadium. Besides, it was announced about a positive decision of City-planning-land commission of Moscow concerning the projects of hotels in Tverskaya str. (about 200 rooms), in M.Kozikhinsky per. (110 rooms), in M.Dmitrovka (20 rooms) and in B.Krasnoselskaya str. (150 rooms), which will increase the upper segment of the Moscow market in future.
During Q2 the increase of supply of hotels under international operators’ management in regional cities reached 205 rooms due to the opening of the Ibis hotel in Samara. On the whole, by the results of H1 the aggregate increase of hotels of international brands in regions exceeded 500 rooms.
The main trend of Q2 2012 was the beginning in the first months of the year growth of the main operating indices of the hotel market of Moscow. The occupancy still stay at a stable level of more than 70% for the upper segment and about 60% for the market on the whole. The price indices also display stable positive dynamics.