Ural-Hermes: Yekaterinburg office buildings market development to slow down for 2-3 years

26 July 2013 (16:08)

July 26, 2013. Yekaterinburg office buildings market is gradually growing bigger: 9 new business centers will be commissioned in 2013 alone. The city council reports that the office space amounts to 1.441m sq m in the business centers alone, and some 100,000 sq m get commissioned every year. This year, 140,000 sq m worth of office space are expected to be commissioned.

At the same time, Ural-Hermes Consulting Company's analysts point out that the office buildings market's development will slow down over the next two to three years. This has to do with the fact that the buildings that get commissioned at the moment are those that were started before 2008; virtually no new projects took off during the recession years. Another sign that the market is holding back is the fact that filling a building with tenants takes a long time: there are still vacant offices in the buildings commissioned as early as 2011 (Vysotsky, Manhattan, Filitz, and others).

Ural-Hermes also reports that the amount of office space in Yekaterinburg grows by 50,000 to 80,000 every year, that is, by 17% on average in 2006-2012.

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