RESEARCH AND CONSULTING DEPARTMENT April 2010 REAL ESTATE MARKET MONITORING

Transcription

1 RESEARCH AND CONSULTING DEPARTMENT April 2010 REAL ESTATE MARKET MONITORING

2 April 2010 Content 1. Residential real estate market Office market Retail market Hotels market Countryside real estate market All rights reserved. This report has been prepared for information purposes only. The data and information contained herein are the exclusive property of Blackwood Real Estate company. Reproduction of the report in total or in part is allowed only with a prior written permission of the Blackwood real estate company. Quoting is allowed with reference to the source.

3 RESIDENTIAL REAL ESTATE MARKET April 2010 Map 1.1. Moscow. CAD. Elite new residential buildings. Market volume and structure In April 2010, 184,6 thous. sq. m. of residential space in 36 residential complexes were available in the elite primary market. Most supply was concentrated in Khamovniki (Ostozhenka and Prechistenka Streets), Presnensky and Arbat sub-districts. The buyer activity was high as the number of incoming requests for purchase of residential space in Blackwood doubled in April 2010 in comparison with the corresponding period in The most sough-after apartments were those measuring sq. m. priced at $1-2 million (approx 50% of the incoming requests). 3

4 RESIDENTIAL REAL ESTATE MARKET April 2010 Map 1.2. Moscow. CAD. Elite new residential buildings. Prices $ thou. rub $ ,6 thou. rub $ ,7 thou.rub Jan. 09 Fev.09 Mar.09 Apr.09 May 09 Jun. 09 Jul. 09 Aug.09 Sep.09 Oct. 09 Nov.09 Dec.09 Jan.10 Feb.10 Mar.10 Apr.10 Jan. 09 Fev.09 Mar.09 Apr.09 May 09 Jun. 09 Jul. 09 Aug.09 Sep.09 Oct. 09 Nov.09 Dec.09 Jan.10 Feb.10 Mar.10 Apr.10 primary market secondary market primary market secondary market In April, the prices in the elite residential market continued to rise. The growth in the elite primary market amounted to 2,8% and in the elite secondary market to 0,6%. In April 2010, the price of 1 sq. m. amounted to $18,050 per sq. m. in the primary residential market and $22,860 in the secondary market. After the market bottomed out, the average price growth reached 11% in the primary residential market and 3% in the secondary market. Even though the prices maintain stable growth, they are still below the pre-crisis level, by 12% in the primary market and by 7% in the secondary market. The priciest apartments could be found in Ostozhenka-Prechistenka ($24,200 per sq. m.), Arbat ($18,700 per sq. m.) and Yakimanka ($18,100 per sq. m.). 4

5 OFFICE MARKET April 2010 Map 2.1. Moscow. CAD. Supply volume and structure REAL ESTATE MARKET MONITORING The office real estate market of Moscow remains stable as the main trends which appeared in the post-crisis period are still valid and the business activity is high. In April 2010, a number of lease and sale transactions were signed (please, see the spreadsheet below). Most lease transactions were for offices measuring over 2,000 sq. m. in reconstructed class В+/- business centers. Still, the negative trends remain in force, some developers amend their plans and change characteristics of their office projects in the pipeline, delivery dates of buildings under construction are rescheduled. Thus, the business center in Valovaya Street in the place of the Baking Plant 1 will be commissioned in the end of 2012 instead of 2011 (its developer is Avgur Estate, the area is over 37 thous. sq. m.); the construction of the Small Entrepreneurship Business Complex in Ryazansky Prospect will last till July 1, 2012 (its developer is IFG Capital LLC, the gross area is 86,410 sq. m.). Besides, the Moscow Government decided to amend the construction project of the town council buildings in the Moscow City IBC: it s planned to include suites and a hotel in the surface part and decrease the city share from 50 tо 40% in order to raise its investment attractiveness. 5

6 OFFICE MARKET April 2010 Map 2.2. Moscow. Rental rates *. Commissioned properties. Announced projects In April 2010, two major multifunctional projects including office space were announced: the multinational complex in 5 th Donskoy Proezd with a gross area of over 400 thous. sq. m. as well as a multi-phase complex with a gross area of 870 thous. sq. m. in Pravda Street in the place of Media Pressa (Pravda) printing plant which is owned by Promsvyazcapital Group. It will include hotels, economy and business class residential space as well as office and exhibition space. The investment amount will reach $1 billion. Spreadsheet. Some lease transactions in the office real estate market, April 2010: Buyer/tenant Name Leased/purchased space, sq. m. Address Transaction type Nokia-Siemens Stanislavsky Factory Over 5,000 sq. m. Stanislavskogo Street 21 Lease Greenatom CJSC Novospassky Dvor Over 4,000 sq. m. Derbenevskaya Emb. Lease Prodo Management Danilov Manufacturing Plant sq. m. Varshavskoe Highway 9 Lease Distribution chain Sheremetyevsky sq. m. Polkovaya Street Lease * - hereinafter the rental rates are indicated exclusive of VAT and OPEX 6

7 RETAIL MARKET April 2010 Map 3.1. Moscow. Opening of professional retail centers In April, the VIVA! Retail Center measuring 32,000 sq. m. was opened in Butovo (the leasable area is 22,000 sq. m.). Among its anchor tenants are a Carousel hypermarket (scheduled to open in May) and a MediaMarket household goods and appliances store. The project developer is Perga Development and Management Company, its investor Accent Russia Opportunity Fund. This is the first professional retail center in Butovo which, together with such factors as a carefully elaborated concept and a selected tenant pool, lets us believe that the project will be a huge success. Another important event of April was the opening of the first UNIQLO store in the Atrium Shopping Mall. The store of this cheap-chic Japanese clothier measures 1,200 sq. m. The company intends to open ten more shops in Russia (measuring 700 3,000 sq. m.) over the next three years. Considering low competition among international brands in the Russian market in the mid-price segment, we can be confident that the brand will enjoy high popularity. As far as Russian retailers are concerned, the MIR chain which sold consumer electronics and home appliances filed for bankruptcy. Still, there re some positive news: X5 Retail Group and O Kay plan to develop a new tough discounter type of trade. 7

8 RETAIL MARKET April 2010 Map 3.2. Rental rates for retail space by administrative districts of Moscow In April 2010, the street retail segment continued to stabilize, we observe minor rental rate fluctuations in most retail corridors, the rental rates in some streets (first of all, in such popular streets as Tverskaya, Arbat, Petrovka) demonstrated growth. The number of retail premises openly offered for lease is declining which shows that the vacancy rate continue to fall and the market is coming back to the old scheme of leasing street retail premises when the direct access to the landlord was quite restricted. Besides, several retail premises were offered for lease at extremely high rents, $4,500 5,000 per sq. m. per year. In April, such expensive retail properties could be found in Arbat and Tverskaya Streets. It shows that the landlords are positive that the market is likely to recover soon. 8

9 HOTEL MARKET April 2010 Map 4.1. Moscow. Hotel market structure In April, the Renaissance Moscow Monarch Centre (5*, 366 rooms), the Katerina Park (3*, 260 rooms) and the Ukraine (after the reconstruction, it operates under the Radisson Royal brand, 5*, 505 rooms, 38 suites) were launched adding more than 1,000 rooms to the hotel market. Therefore, the number of rooms in the Moscow hotels today amounts to approx 39,000, 8,000 of them are operated by international hotel companies (both direct management and under a franchise contract). As far as supply growth in regional cities is concerned, the Heliopark Residence (3*, 93 rooms) was opened in Penza. It s the first hotel in the town which forms part of a hotel chain; international operators so far have made no announcement regarding future hotel projects. April saw another important event: Russian Azimut Hotels Company signed an agreement to operate the New Bereg Hotel located near the Pirogovskoe water reservoir in Moscow Region. It will be the first countryside hotel in the Azimut Resort chain. Therefore, we see that Russian hotel companies strive to conquer a market share partially because the competition with international hotel chains becomes tougher. 9

10 HOTEL MARKET April 2010 Map 4.2. Moscow. Opening of new hotel properties The April events show that the international hotel operators are still very interested in the regional cities of Russia, and not only in the so called millioniki cities: the Hilton Garden Inn project in Ulyanovsk is being actively elaborated (its developer is Aviator Company), the hotel project under one of the brands of Accor Group in Tuymen is a subject of negotiations (its developer is ARSIB Holding). Another important piece of news is that starting from June 1, 2010, the Rezidor Hotel Group will manage ten Reval Hotels in Russia and the Baltic countries. The Reval Hotel Sonya (4*, 173 rooms) operating in St. Petersburg will join the Radisson Blu brand which will help increase the hotel room stock of the group by more than 2,000 rooms and will let the Rezidor Hotel Group strengthen its position in the Baltic states. 10

11 COUNTRYSIDE REAL ESTATE MARKET April 2010 Map 5.1. Moscow Region. Cottage settlements. Market volume and structure The developer and buyer activity continued to rise in the countryside residential market of Moscow Region in April Following the trends formed in March 2010, more economy class settlements offering land plots without labor contracts are commissioned, developers announce their plans to implement new countryside projects or go back to the projects frozen during the crisis. Among new projects are the Istrinskaya Dolina project developed by Vector Investments. It s planned to build sixteen cottage settlements of different price segments on the shore of the Istrinskoe water reservoir provided with developed infrastructure. The gross project area amounts to 1,700 ha. 11

12 COUNTRYSIDE REAL ESTATE MARKET April 2010 Map 5.2. Moscow Region. Countryside projects delivered In April 2010, Absolute Management Company announced the implementation of three new projects offering land plots without labor contracts for sale. Among them are the Tsvetochny project (25 km away from MKAD along the Kaluzhskoe highway), the Marusin Lug project (12 km away from MKAD along the Egorievskoe highway) and the Lesnaya Sloboda project (12 km away from MKAD along the Kievskoe highway). Completed cottages measuring from 220 to 280 sq. m. as well as land plots with and without labor contracts are offered for sale in Ontario settlement (50 km away from MKAD along the Minskoe highway). Chetyre Sezona (38 km away from MKAD along the Dmitrovskoe highway) and Skazochny Les (67 km away from MKAD along the Simferopolskoe highway) offer land plots without labor contracts measuring from 10 to 15 sotkas. Zagorodny Project Company commenced sales in Zapadnaya Dolina multi-format settlement (20 km away from MKAD along the Kievskoe highway) and Morton Company began selling apartments in low-rise Sacramento settlement (12 km away from MKAD along the Gorkovskoe highway). 12

13 COUNTRYSIDE REAL ESTATE MARKET April 2010 Map 5.3. Moscow Region. Countryside settlements. Prices In April 2010, the average price level in the countryside settlements of Moscow Region remained at the same level. The market players don t make any attempts to raise the prices and sell their properties at the prices established in early We observe deterred demand for completed elite and business class residential properties and unsatisfied demand for land plots without labor contracts with utilities in the economy segment. Blackwood's experts believe that the economy segment will remain the fastest-growing segment as it experiences major deficit and is least saturated. More quality projects are expected to be commissioned in this segment and not only land plots without labor contracts will see demand. 13