Moscow Commercial Real Estate Construction May Fall Threefold

Russia's economic slump will see thesupply ofnew Moscow retail andoffice space drop significantly from2016, commercial real estate firm CBRE said ina report.

Moscow developers will likely build no more than 1 million square meters ofoffice space andonly half amillion square meters ofretail space over 2016 and2017, thereport said, adding that office vacancies could reach up to3 million square meters bythe end ofthis year.

CRBE predicted that theflow ofnew offices andwarehouses onto themarket in2015 would rival last year's figures thehighest since the2008-09 economic crisis as theprojects now coming online were begun long before theruble's fall ofover 40 percent tothe U.S. dollar since last year.

Moscow will get 1.4 million square meters ofoffice space this year, thesame as it built last year, and630,000 square meters ofretail space, compared to703,000 insquare meters ofnew retail space last year, thereport said.

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Moscow Commercial Real Estate Construction May Fall Threefold