New market study, "Russia Real Estate Report Q2 2011", has been published

April 6, 2011 - PRLog -- For most protagonists in Russia's commercial real estate sector, 2010 was the year in which rents stopped falling. Our interviews with in-country sources in early, mid- and late 2010 confirmed that the brutal correction that took place during 2009 was finally over.

Nevertheless, the global financial crisis has had a major legacy in the form of new property that has become available over the last year or so. The implication is that vacancy rates in most of the Russian commercial real estate sector are, and are likely to remain, high. Aside from the retail sub-sector in Moscow, vacancy rates across all of the 12 sub-sectors surveyed (ie office, retail and industrial property in each of Moscow, Samara, St Petersburg and Ekaterinburg) were (well) into double digits at the end of 2010.

Looking forward, our in-country sources envisage that 2012 will be a good year for the office sub-sector, with rental rates rising by around one-fifth in each of the four cities. However, much more modest increases in rental rates are expected for the retail and industrial sub-sectors.

Relative to most of the countries whose real estate sectors are surveyed by BMI, our in-country sources cited wide ranges in the rents and yields that were prevailing at the end of 2010. The obvious implication of this is that there is a wide disparity between high-end and low-end real estate within each of the subsectors. The disparity is less for the industrial sub-sectors than for the retail and office sub-sectors. Anticipated yields for low-end property in the office and retail sectors are around 20% and 27% respectively, in all cities. The implication is that some protagonists expect that capital values can fall sharply for such property. Put another way, net absorption of new real estate will likely be centred on brand new (and typically high-end) developments.

In general, though, yields are broadly expected to track sideways over the next two years or so. The implication is that - if only for newer and more upmarket premises - rents and capital values are likely to move in line with each other.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/130612_russia_real_estate_repo...


Report Table of Contents:

SWOT Analysis
- Russia Real Estate/Construction SWOT
- Russia Economic SWOT
- Russia Business Environment SWOT
Real Estate Market Overview
- Table: Russia's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, EUR)
- Table: Russia's Real Estate Market - Net Yield, 2010 And 2011 (%)
- Table: Russia's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
- Table: Russia's Real Estate Market - Available (m2) And Vacant Space (%), Mid-2010
Forecast Scenario
- Real Estate Outlook
- Table: Russia's Real Estate Market - Rentals, 2010-2012 (m2/month, EUR)
- Table: Russia's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Construction Industry Outlook
- Table: Russia Construction And Infrastructure Industry Data, 2007-2014
- Table: Russia Construction And Infrastructure Industry Data, 2013-2020
- Russia's Macroeconomic Outlook
- Russia - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Rating
- Table: Europe Real Estate/Construction Business Environment Rating
- Russia's RECBER
- Project Finance Ratings: Outlook For Central And Eastern Europe
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Russia's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Central And Eastern Europe And Central Asia
- Table: Trade And Investment Ratings
Company Monitor
- Jensen Group
- LSR Group
- Mirax Group
- Peresvet-Group
- RODEX GROUP
- SU-155 Group
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.