Class C offices are the most closed, most voluminous and, oddly enough, the most scarce market. Moscow small businessmen still have to rely only on rooms in former research institutes and basements. And although there are unoccupied and highly profitable niches in the low-cost sector, far from all developers undertake such projects.
Most of the most inexpensive and nondescript class C offices are in the Moscow office market. In total, the office sector is approaching 11 million square meters. m, of which only 4 million square meters. m are occupied by A- and B-class offices, of which the smallest part falls on A. Also in Moscow there are 24 Class B business centers – reconstructed buildings with a total area of 510,000 sq. m. m (IRN.ru data). In the first, second and third segments there is a shortage of premises. Continue reading
The fact that today’s investments in suburban real estate promises considerable profit in the future to any participant in this market segment is noteworthy. Prices for objects annually only increase, and in successful projects their growth is about 15-20% annually. So the construction of cottage villages can rightfully be considered a profitable business. Even those who purchase suburban real estate on credit, and that will not remain on the loser – the final profit significantly overlaps payments to the bank. At the same time, buying a plot of land at an early stage of development is more profitable than during the construction of a cottage or upon completion of work. This is proved by practice: most sites in suburban villages usually sell out long before the start of construction work. Moreover, the higher the class of the object, the more noticeable is the benefit, reaching up to 25% of the total cost. Continue reading