Jones Lang LaSalle: 25% of new office buildings in Russia to be put up in Yekaterinburg

28 November 2013 (09:19)

November 28, 2013. The supply of office space in Yekaterinburg is 3.5 times behind Moscow’s, the analysts from Jones Lang LaSalle found out in the course of their comparative analysis of office space in non-capital cities of Russia.

‘The supply and demand in the office space segment usually reflect the pace of a city’s economic development, which, in its turn, affects the scale at which different businesses prefer to penetrate the market and therefore to become the potential tenants on the local market. Moscow is definitely Russia’s leading and largest office space market, which nearly 1.3 sq m of office space per capita. There is a great discrepancy in figures on the capital and the provincial markets. The three cities that come closest to Moscow in terms of office space supply are Saint Petersburg (whose supply is still 3 times smaller than that in Moscow), Yekaterinburg (3.5 times), and Novosibirsk (4.5 times),’ says Jones Lang LaSalle Deputy Research Director Olesya Dzyuba.

According to this research by Jones Lang LaSalle, the markets of such cities as Omsk, Ufa, or Chelyabinsk are, on average, 20 times below Moscow’s However, the agency’s analysts predict that the supply of good quality office space might go up by over 20% in the cities with population over 1m people by the end of 2014, so the figure might reach 3m sq m. Yekaterinburg proves the fastest-growing non-capital market: a quarter of all the new office buildings expected to be built soon (130,000 sq m) will actually be put up here.

Other materials on the topic::