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06.07.2018 | Наталья Кулагина

The anti-record of 2018 for the commissioning of retail space in Russia

In 2018, about 350 thousand square meters of retail space will enter the Russian market, which is half the historical minimum of 2017. In Moscow in 2018, no more than 130 thousand square meters of high-quality retail space will be built, which is 40% of the total volume of new construction throughout Russia.

 

In the first half of the year, 6 shopping centers were opened in Russia with a total leased area of 173,000 sq.m. In the second quarter, only 2 shopping centers were put into operation: Kashirskaya Plaza (GLA 71,000 sq. m.) in Moscow and the second stage Shopping center Retail Park Depo (GLA 7,500 sq. m.) in Nizhny Tagil.

 

 

In Moscow, construction activity in 2018 corresponds to the level of the previous year, when 135 thousand square meters of retail space were commissioned in the capital. The largest new shopping center this year (both in Moscow and in Russia as a whole) became the shopping center "Kashirskaya Plaza". No more large-format shopping malls are expected in Moscow by the end of the year, the retail area of the remaining planned and already open facilities does not exceed 20 thousand square meters. m.

 

In Russia, the average size of a retail facility planned to open decreased from 38.5 thousand square meters in 2017 to 23 thousand square meters in 2018. However, next year the average size will increase again to 44 thousand square meters, as large facilities are planned for commissioning.

 

 

The decrease in new construction is a positive rather than a negative signal, as the market is in the process of self-regulation. After record-high construction volumes in 2014 and 2016 and a rapid increase in the level of available space, the market needs to come to a balance. Now we see that the vacancy in shopping centers opened 2–3 years ago is gradually decreasing.

Evgenia Safonova, Research Analyst at Cushman & Wakefield

 

 

The return of new major projects to the capital's market is expected no earlier than 2019, when the construction of the Salaris shopping center (GLA 105 thousand sq. m.) as part of the Salarievo TPU and the shopping part of the entertainment park Island of Dreams (GLA 70 thousand sq. m.). The commissioning of several large projects in other cities of Russia has also been announced, which will lead to a new wave of construction activity in 2019, according to Cushman & Wakefield, about 700 thousand square meters of retail space will be commissioned.

 

Photo: shutterstock

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