In 2010 price increase for Moscow office premises is improbable

CB Richard Ellis company analysts believe that price increase for Moscow office premises is unlikely in 2010 year. Experts expects in 2010 stabilization of rental rates in office real estate market.

The decrease of new offers volume and steady demand level resulted in the stabilization tendency. Rates rise, according to analysts, is unlikely as the most part of available office spaces is to be offered under renovation.

The report says that owing to this fact the necessity of extra expenses for renovation is to emerge, so the owners have to make concessions in price and agreement terms.

Experts add, that a minor price growth is possible only for small office space blocks (100-500 square meters), after renovation and located in the centre.

From the beginning of the global crises the rates increased by 40-50%, and now make up in average 600$ for a square meter in “A-list” business centers and 250-450$ for a square meter in “B-class” buildings.

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