- 18/03/2019 - 10:28
Early 2016 was characterized by a further decline in development activity. Over the first three months of the year, only 81K sq. m of new office space was brought to the market, this being 3.7 times less than in the same period last year.
Total net absorption amounted to 208K sq. m, which is comparable with the annual volume for 2015, and greater by 292K sq. m than that of the same period last year. The increase was achieved primarily due to an increased demand for additional office space in Class A/B+ properties.
The decline in new spaces has significantly influenced the balance of supply and demand. Over the past three months, net absorption exceeded the volume of new construction by more than 2.5 times, resulting in a decrease in the level of vacant spaces.
Rental prices exhibited further decline. As at the end of March, the average asking rental rates in Class A properties dropped over the quarter by 16%, down to RUB 27,000 per sp. m. per year. In 2016, the RUB rental rate market continued strengthening.
