We are pleased to present a report on the Moscow office real estate market for Q1 2023.
The situation in the Moscow office real estate market has begun to stabilize after the negative impact of the economic and geopolitical situation last year. Three new office buildings with a total rentable area of approximately 27,000 sq m increased the volume of supply in the market to 19.8 million sq m. By the end of 2023, about 499,000 sq m of office space are expected to be completed, thus pushing the total volume of office space in Moscow beyond the 20 million sq m mark.
In the first three months of 2023, demand amounted to 391,000 sq m, which is 18% higher than the result for the same period last year. The vacancy rate decreased by 0.6 percentage points, but this had little effect on rental rates, which increased by 3.3% compared to the results of last year. However, the central business district still experiences a gradual release of space previously occupied by foreign companies, which in turn leads to an increase in vacancies and a decrease in rental rates in premium locations.