Anna Nikandrova: Retail real estate market is gradually coming back to life
We see that the retail real estate market is gradually coming back to life. Nevertheless, the current and planned supply still significantly exceeds demand, and as a result, we will see a gradual increase in vacancy. However, the Russian market remains attractive to international retailers.
In Q1 2016, there were two important openings – the opening of the KidZania theme park and the first full-fledged Victoria’s Secret underwear boutique.
In addition to plans to complete more than half a million square meters of retail space in conventional shopping malls, the Moscow retail real estate market could grow in the medium term by nearly ten million square meters of retail space, which will be located as part of 273 Transport Hubs within the framework of implementation of the program to build transport hubs.
Not all the planned space will be in the format of conventional shopping centers – a substantial part of it will be so-called support-retail as part of railway stations. However, some transport hub designs provide for large shopping centers. The most promising transport hub projects with interesting locations are of interest to all major professional developers.