Russia: a dynamic market for warehouses. May 20, 2008
From here to the end of 2008, more than 1 million square metres of warehousing will be available in an exploding Russian logistics market.
Several figures are going around regarding the lack of lack of logistics facilities in the area where developers, investors and logisticians are announcing projects with areas going up to 20,000 m², some to 300,000 m².
At the present time, the range stemming from various studies puts the demand at between 1 and 2 million square metres for the whole of the area; it may be that this concerns only Moscow and its surrounding area.
A few figures
Construction costs increased an average of 20% in 2007.
Land prices have soared even more, 30% on average in the same year.
The rents for “class A” logistic platforms are from $110 to $130/m² /year.
The vacancy rate has shown a slight tendency to rise but has not exceeded the 5% threshold.
Development directions
From a geographical viewpoint, Moscow plays a preponderant role, particularly its northern area, and along the MKAD and Betonka ring roads.
Moreover, some towns with more than 1 million population are welcoming their very first warehouses. The towns of Kazan, Nizhny Novgorod, Novosibirsk, Rostov-on-Don, Saint Petersburg, Ufa and Yekaterinbourg have put themselves forward as the future Russian logistics areas, with 600,000 m² of construction projects in view.
In the next 2 to 5 years, secondary towns, i.e. towns with 150,000 to 800,000 inhabitants, should also see their first platforms. Finally, some investors are looking further east and to Siberia, where new projects may also see the light.
Several figures are going around regarding the lack of lack of logistics facilities in the area where developers, investors and logisticians are announcing projects with areas going up to 20,000 m², some to 300,000 m².