The level of free space in high-quality shopping centers in Moscow is at an extremely low level (less than 1%). The potential for the construction of large shopping centers in Moscow is extremely low, which means that the competition between retailers for premises in existing shopping centers will increase.
Retailers from all market segments already operating in Russia announce their regional expansion and development plans in the Russian regions.
An analysis of the structure of retail trade turnover shows that, as before, the retail turnover of non-food products is growing much faster than the turnover of retail food products. According to the results of the third quarter of the year, the retail trade turnover of Russia grew by 6%, while the growth in the segment of non-food products amounted to 9,6%, and the retail trade turnover for food products grew by only 1%.
Despite the fact that in Moscow now the interests of the authorities and developers have shifted towards the construction of small (<5 000 sq. M. GLA) shopping centers, the construction and commissioning of large shopping centers continues outside Moscow. Over the three quarters of 2011 in Russia, 14 quality shopping centers were built with a total trading area of 542 000 sq. M. GLA (3 in Moscow and 11 in other cities of Russia), of which seven were introduced in the 3 quarter of 2011. In total, 2 mln sq m of GLA is under construction in high-quality shopping centers which, according to the plans of developers, can be commissioned in 2012.
For the first time since 2007, retail property came out on top in terms of investment. This segment currently accounts for 43% of investments, which is about 2,8 billion US dollars. High-quality retail facilities are still in short supply and, being put up for sale, attract a large number of investors who, in some cases, are willing to pay a significant premium to the market price of the property. In the first three quarters of 2011, the volume of investments in commercial real estate in Russia amounted to 6,5 billion US dollars, which is 60% more than in the same period of 2010 year and 12% more than the results of 2008 year (5,8 billion dollars), which until now was the most successful in the commercial real estate investment market.
“The retail real estate segment continues to be the most stable and predictable relative to other retail real estate segments (office, warehouse, land market) due to consumer activity,” comments Lada Belaichuk, deputy head of research at Cushman & Wakefield.