Real estate rent in the center of Moscow increased by 13% per quarter
Specialists of the RRG group of companies within the framework of the project “Consensus forecast of the dynamics of key economic indicators and indicators of the Moscow real estate market for the period from the 4th quarter. 2011 to IV quarter 2013 of the year ”summed up the results of the first quarter of 2012 of the year.
Analysts say that the market gave surprises, despite cautious forecasts of leading experts. The average rental rate of street-retail facilities within the Garden Ring, which, according to experts, should have remained virtually unchanged, increased by as much as 13%. According to RRG monitoring, by the end of March 2012, the rental price of 1 sq. M. Reached $ 2234 per 1 square meter per year against $ 1974 at the end of 2011.
Also, despite the forecasted 1%, the weighted average price of retail real estate (6%), the weighted average street-retail price within the Garden Ring (5%) and the average rental rate for office property inside the Garden Ring (5%) increased significantly.
Denis Kolokolnikov, Chairman of the Board of Directors of the RRG Group of Companies, considers the discrepancy between the real situation and forecasts to be quite logical: “The first quarter is always characterized by significant market fluctuations. This is a “failure” in January due to the New Year holidays, and a sharp recovery in activity in February and March. In addition, this year, all markets - and real estate is no exception - were affected by the political component. Before the elections and immediately after them, many commercial property owners were in a hurry to carry out certain operations, fearing changes in the "rules of the game."
As for the street-retail segment within the Garden Ring, the low supply volume plays a huge role here. In such a narrow segment, the price may depend on entering the market or leaving literally one or two very expensive objects. Therefore, in the near future we can expect a correction in rates for this type of real estate, due to its volatility. " About this writes the site malls.ru.