Volume of Investments in Russia’s Retail Property in 2019 to Exceed Figures of 2018
Companies analyzing Russia’s retail property market have begun to release the first results of 2019 and to formulate trends for 2020, reports the portal MarketMedia.
The volume of investments in Russia’s retail property in 2019, according to a preliminary analysis by the consulting company CBRE, could reach 80 billion rubles, which is 1.45 times higher than in 2018. Several other large deals are expected to be completed by the end of the year. According to ‘Magazin Magazinov’, this year, just over 700,000 m2 of shopping space will be put into operation in Russia.
In Russia’s regions, analysts estimate that the total area of new shopping space will be 374,000 m2, which is 1.8 times higher than in 2018.
The average area of new facilities is expected to decrease over the next two years. If this year the average area stood at 28,600 m2, next year it is expected to drop to just 14,500 m2. The volume of new shopping facilities being put into operation is also expected to decrease: no more than 250,000 m2 is scheduled by developers for 2020.
Market experts are observing a positive dynamic in the occupancy rate of currently operating shopping centers, such as the GOODZONE Mall after its reconception, notes the portal CRE.
The redevelopment and reconception of current shopping centers is a long-term trend. The needs of consumers have changed considerably, and facilities built in the early and mid-2000’s no longer meet those needs.
FORTGROUP is gradually reconceptualizing its Moscow-based facilities. In July 2019, the Golden Babylon Shopping Centre in Rostokino was renamed the Europolis Shopping Centre, while the ones in Otradnoe and Yasenevo became FORT Shopping Centers.
The City Mall Shopping Centre in St. Petersburg is also being reconceptualized. As part of this project, CITY FOOD gastronomic space was opened in the summer of 2019. A similar space is currently being constructed in the Europolis Shopping Center in Rostokino, Moscow.
