Investments in the capital’s street commerce increased by between 30% and 55%

Kommersant provides the following data collected by market players:

• the volume of investments in street commercial premises in Moscow in 2023 can grow by 55% year-on-year, up to 1.8 trillion rubles (“Store Shop”),
• the volume of investments in street commercial premises in Moscow in 2023 can grow by 30% year-on-year (NF Group),
• The value of asset supply in street trading in Moscow in 2023 may double year after year, up to 300 billion rubles (“Shop Shop”).

Investors invest mainly in premises suitable for opening stores in new areas of the capital under construction. Investment transactions in the purchase and sale of commercial properties on the street account for approximately 90%.

Nikita Kornienko estimated the average budget for the purchase of commercial premises on the street at 30 million rubles, approximately the same amount that businessmen previously invested in the purchase of residential real estate, but now this trend is fading.

Experts believe that the reasons for the growing interest in investing in retail are the stagnation of the residential real estate market, as well as rising inflation and difficulties in accessing foreign assets.

According to experts, the majority of the premises acquired are resold or rented (only 10% are used for own business projects). But handing over the acquired assets is not so easy.

High rental prices (within the Boulevard Ring – up to 8.5 thousand rubles per m2, outside the Moscow Ring Road – up to 2 thousand rubles per m2) and low demand lead to idle spaces (in the center of Moscow , the average vacancy this year – 10.1%, in new residential areas – up to 50-60%).

However, Irina Kozina, head of street trading at NF Group, is confident that infrastructure retail is “resistant to crisis trends and can provide a return of 8 to 10% annually” (according to other estimates, from 7 to 9%, which is comparable to bank deposits).