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CBRE reports the active start of the year in Moscow Office Market. 1,5 times increase of demand in Q1 2017

CBRE Research Department reported the results of Q1 2017 in Moscow office market. 

The report states 1,5 times increase of demand in Q1 2017. Take-up amounted to 239,000 sq m, which is 45% higher than the value in the same period last year and 66% higher than in Q1 2015.

Elena Denisova, Senior Director, Head of Offices, CBRE, Russia, comments: “Demand for office real estate continues to recover gradually. The tendency of increasing take-up, which began to appear in the second half of last year, remained in Q1 2017. Take-up in Q1 2017 significantly exceeded values in similar periods of previous two years. Besides demand growth, transformation of structure is taking place. The volume of renewals and renegotiations reduced to pre-crisis levels, and new deals are of market nature. Improvement of market environment is also encouraged by decreasing vacancy rate. At the same time, vacant supply of large office space in Class A segment, whose volume decreased by 35% in 2016, reduced by another 5% over the three months of this year.”