Guiding Lines: In Wait of Offices
Moscow has the highest rating (6.75) in Europe in terms of real estate investment, with Istanbul at 6.74, Berlin at 5.74, Milan at 5.68 and London at 5.53. The results of research on the European real estate market carried out by Urban Land Institute were presented at a conference organized by PricewaterhouseCoopers.However there are insufficient offices in Moscow. It is especially difficult for firms needing large areas of 10,000 sq.m and more. To rent such an area in a functioning business center is practically impossible, explain experts, and there are also very few small offices. As a result the number of rental contracts concluded at the stage of construction is increasing. Companies that have concluded such contracts will be preparing to move no sooner than the end of 2008.
According to forecasts, demand for offices in 2008 will only grow. What will happen with supply is anyone’s guess. PricewaterhouseCoopers explains: as a result of the mortgage crises there is less money in the market and this will affect the speed at which announced projects will be realized. It is possible that some forward-thinking tenants will have to wait longer than they had wanted to.