Private investors with capital of 15 million rubles have become more active in the Moscow office real estate market

The number of applications for office property purchases has increased by 25% since July 2024, the firm found.

“Investors used to prefer residential properties, but now they are increasingly turning their attention to office space, which they buy in order to rent it out to small and medium-sized companies,” the expert said.

The average profitability of A-class office property when rented in Moscow reaches 12%, the return on investment in offices is on average 8 years at the rate of 45 thousand rubles per sq. m per year, the developer company calculated.

Small and medium-sized companies have also started buying office space to avoid being dependent on rising rental prices, which are growing by about 10% a year, the expert believes.

Demand for large premises is also growing in Moscow, Zakharova believes. Russian companies, which are developing in the context of import substitution, need additional space for their growing staff, which is why demand for large office blocks of up to 2,000 square meters is growing.

Institutional investors are also interested in large office blocks, entire floors or buildings with an area of ​​3,000 to 15,000 sq. m, but there are few such offers in the Moscow region.

Against the backdrop of growing demand in the first half of 2024, the volume of offices available for purchase and rent in Moscow decreased by 40%, Level Group estimates.