Commercial rental prices have increased by 10–20%

Over the past year, rents for retail space located on the ground floors of Moscow buildings have increased significantly—by as much as 10–20%.

The main reasons for this trend include:

• increased demand for this category of real estate, rising prices for construction materials and labor,
• a shortage of available space,
• the renewed practice of landlords indexing rent payments due to rising costs, increased cadastral value, and, consequently, property taxes. However, this scheme of increasing payments to compensate for landlord expenses does not work in less attractive areas of the capital, where the risk of vacancy is very high.

Experts note that the rise in rents is particularly noticeable in areas such as Novy Arbat, Myasnitskaya Street, and Stoleshnikov Lane. Real estate in these areas is in high demand due to popular tourist routes and stable business activity, which invariably attracts potential tenants.

An increase in average commercial real estate rental rates has also been noted in St. Petersburg.