Moscow saw record level shopping centre completions in H1 - JLL

Moscow accounted for more than 50% of all Russia’s new retail property supply in the first half of 2014, according to research from JLL.

In Q2, Moscow’s retail market recorded 183,000 m2 of new completions, the highest quarterly level for 4.5 years. As a result, the Russian capital saw 242,000 m2 of completions in H1, the highest H1 level since 2009.

The H1 figure for Moscow exceeds the total completions level of 2013, noted Tatyana Kluchinskaya, national director, head of retail department at JLL, Russia & CIS. 'As of H1 2014, total stock in Moscow exceeds the level of 3.8 million m2 GLA.'

Moscow is catching up with other European capitals in terms of market density. As of H1 2014 total stock per 1,000 inhabitants achieved the level of 327 m2 and by the end of the year is likely to reach 368 m2, JLL said.

Elsewhere, however, Russia’s retail market demonstrated negative dynamics compared to 2013, Kluchinskaya said. Overall, Q2 2014 completions totalled 261,500 m2 which is 12% less compared to Q2 2013 but 55% more compared to Q1 2014.'

Across the country, completions are expected to reach 1.7-1.8 million m2 this year, JLL said. While this is lower than the record figure of 2008 (1.85 million m2), by the end of the year, total stock in Russia will exceed 18 million m2. That will make Russia the second largest market in Europe after the UK (18.2 million m2) and ahead of France (16.5 million m2).