What Will Year of 2014 Offer to Warehousing Property Market?

Recently warehousing property has been in great demand. In Russia the given type of commercial buildings is to a great degree concentrated around large cities: Moscow (Moscow Region), St. Petersburg (Leningrad Region), Ekaterinburg, Novosibirsk, Krasnodar and Rostov-on-Don.

The leader by the warehousing property market volumes is Moscow Region. Last year a new historical record on real estate market of the given segment in Moscow Region was set: according to Knight Frank Company’s data, in 2013 almost 1.5 mln. sq. m were leased and purchased. At that, the highest Russian lease rates were recorded in the region.

Moscow market is the most promising in Russia, as, owing to the policy of the Government of Moscow (for example, prohibition to entrance of trucks in the territory of the city at daytime), many warehouses are moved outside the capital. Companies were forced to do that to save time and money. Therefore, at present a large part of warehouses is situated outside Moscow Ring Road and in Moscow vicinity. The trend of decentralization of warehousing property will continue in 2014.

By results of 3 quarters of 2013 the largest volume of warehousing property in Moscow Region was deployed in the southern direction – 44% of the total rate, which amounted to about 230 ths. sq. m. The northern direction is on the second place. The volume of deployment of warehousing property in the north of Moscow Region amounted to 21% or 110 ths. sq. m.

Diagram. Structure of introduction of warehousing property by directions of Moscow Region in January-September 2013, %

Structure of introduction of warehousing property by directions of Moscow Region in January-September 2013, %

Source: Intesco Research Group, Praedium 

Real estate market depends primarily on the economic situation in the country. During the long-term slump of economy in 2014 a slight decrease of the demand is expected in Moscow Region. With the same rates of increasing of warehousing property, deployment saturation of the given market is expected. However, the situation for separate directions of the region will be somewhat different, as the volume of deployment of the given type of real estate will be different. Realtors consider west and south-west of the region to be the most promising directions.

One of the most important factors of development on the warehousing property market of Moscow Region is construction of Central Ring Road. The authorities expect the given road to be in full operation by 2018. However, the given term can be prolonged. The main task of Central Ring Road is relieving pressure on roads of Moscow and the region (for freight transport).

It should be noted that as early as now prices for lots close to the route started to grow, which is explained with their convenience from the point of view of logistics. On the whole, in 2014 the situation on the warehousing property market in Moscow Region will remain stable, there will be no sharp fluctuations of volumes of deployment or demand decreases/increases.

You can read detailed information in the research report «Russian Market of Warehousing and Storing: Comprehensive Analysis and Forecast until 2016» by Intesco Research Group.

The given values were calculated by analysts of Intesco Research Group on the basis of official statistics.