The market of the capital did not experience any supply increase of quality retail space in Q1 2017 along with a year earlier: not a single shopping centre was opened. 15 retail facilities are scheduled for commissioning in 2017; their leasable area will be about 0.4 million sq m.
Several interesting facts shall be highlighted characterizing the development of the retail real estate market of the capital. Thus, about 30% of the total volume of retail space approached the market in 2014–2016. Besides, there is a natural aging of retail properties: more than 40% of the Moscow market space will need renovation or redevelopment by 2020, according to our estimates. Also, the behavior of the capital buyer underwent some changes entailing changes in the concept of retail facilities. The interest in the development of large shopping centres has been preserved despite the achieved high concentration of retail premises – circa 50% of the capital supply has been formed by projects with GLA of more than 40 thousand sq m.
Source : Knight Frank