Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

1. Department for External Economic and International Relations of Moscow
Moscow’s Real Estate 2013
Anatoly Valetov
Deputy Head of Department
Moscow Investment Presentation in New York City, October 28, 2013

2. General Overview (1)
First half of 2013 was a record high for the commercial real estate
market.
Total investment $3.81 billion, 88% of all investments are in the
Moscow region.
Primary volume of investments (1st half 2013) were in the retail and
office segment – $3.4 billion.
Department for External Economic and International Relations of Moscow
2

3. General Overview (2)
BIGGEST DEALS 1ST HALF 2013
Segment
Project
Volume, $
million
Seller
Investor
Retail
Metropolis
1,100-1,200
Capital
Partners
MSREI
Оffice
Four Winds
360-380
Snegiri / AFID
Millhouse
Оffice
Olimpiya Park
340-360
O1 Properties Casperskay Lab
Оffice
Hermintage Plaza
260-280
Retail
Aura
(Novosibirsk)
220-250
Renaissance RosEuroDevelop
Construction
ment
Оffice
Aquamarine
Phase III (50%)
220-240
Super
AFI Development
Passion Ltd
Hotel
Renaissance
Moscow Olympic
100-130
N/A
Azimut Hotels
Logistics
Tomilino
80-90
GHP
BIN Group
Forum
Properties
N/A
Capitalization rates
Cap. rate (A class) - 8.5% for office,
9.25% for retail, and 11.5% for
logistics.
250-450 basis points higher than
London and Paris.
Commercial risks are closer to
Europe and further from BRICS.
Department for External Economic and International Relations of Moscow
3

4. Retail (1)
General Info:
1st half 2013 – 520,000 sq. m. have been built
High attendance
Positive outlook
Retails and developers are positive
Department for External Economic and International Relations of Moscow
4

5. Retail (2)
Trade operators: Segments «food», «everyday
equipment», «clothing», «cinema»
OUTLOOK
In 2013 103 Shopping malls
with a total volume of
3,155,752 sq. m. in 58 cities
in Russia.
Largest markets are Moscow
and Ekaterinburg (>1milllion)
Novokuznetsk, Tyumen,
Irkutsk (500,000 – 1 million)
Department for External Economic and International Relations of Moscow
5

6. Offices
Lease rates are up 5%.
New 388,000 sq. m. in 1st half 2013
Plans for 2nd half 2013 – 600,000 sq. m.
TOTAL STOCK MOSCOW / 13.44 million sq. m.
VACANCY RATE / 13.15%
AVERAGE RENTAL RATE, CLASS A / US$ 870
1Н 2013 DEMAND (TAKE-UP) / 868,063 sq. m
1Н 2013 NEW CONSTRUCTION / 341,041 sq. m
Department for External Economic and International Relations of Moscow
6

7. Warehouse Market
Supply (class A, B):
Moscow – 7.2 million sq. m;
St. Petersburg – 2 million. sq. m.;
other cities – 2.6 million. sq. m .
Most projects are in Moscow
region – 61% and St. Petersburg
region – 18%.
Department for External Economic and International Relations of Moscow
7

8. Hotel
Hotel rooms: total 32,000 rooms (11,000 brands).
Next 3 years the stake of brand hotels will grow up to 40%.
Russia’s hotel industry capacity rate: 45-49%.
Price for mid-scale segment is 110 USD/night, upscale segment – 160
USD.
Department for External Economic and International Relations of Moscow
8

9. Department for External Economic Activity and International Relations
Address: 13, Tverskaya St., Moscow, 125032
Tel.: +7 (495) 633-68-66
Fax: +7 (495) 633-68-65
www.dvms.mos.ru
www.investinmoscow.ru
E-mail: dms@dms.mos.ru
INVEST IN MOSCOW