Downward pressure on the Russian commercial real estate market can reach its peak in Q1 2015 – EuropaProperty
The Russian commercial real estate market will find itself under pressure at least until Q1 2015, according to the latest research from CBRE. Three scenarios of market development are analyzed in the research:Radical improvement in the geopolitical situation;Continuation of high uncertainty;Worsening geopolitical situation and macroeconomic fundamentals in mid-term period. In all three scenarios market balance will remain under pressure from weakened demand. In Q2 2014 the latter was 30-50 percent below levels, which are normally witnessed. It is worth mentioning that increased uncertainty generated the strongest impact on international companies: in normal situations their market share in demand fluctuated within the 25-30 percent range, while now it is just around 10-15 percent. In the “high uncertainty” scenario, assuming the continuation of “war of sanctions”, take-up volumes in the office segment in H2 2014 might be around 400 – 450,000 sqm. In the industrial and logistics segment this indicator might be around 440,000 sqm. Both forecasts assume that GDP growth will…
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