Moscow-City competitor in the South Port

A new promising area with an area of over 400 hectares will appear in the industrial zone related to the "Yuzhny Port". This object is now called the "second City".

On January 25, 23, during a press conference on the issue of expanding polycentrism in Moscow, the famous architect S. Kuznetsov shared details regarding the future project. Representatives of Metrium spoke about their vision of how the development of the Yuzhny Port will affect the capital's real estate market and the entire metropolis.

Changing transport situation

The innovations planned in the "Yuzhny Port" are in harmony with the concept of a decentralized metropolis, which is the center of social life. Moscow has two such spaces in the form of the historical center and the Moscow-City International Business Center. For a particularly large city, such decentralization is insufficient, leading to a high concentration of transport and citizens in the central part, a significant gap in terms of employment of the population, and the provision of various locations with modern infrastructure.

The emergence of the “second City” will provide an opportunity to:

• reduce the volume of transport traffic in the center;

• create favorable conditions for the formation of a new point where various types of activities will be carried out.

All this was observed after the start of work of "Moscow-City", whose office space was actively filled by companies representing the historical center. As a result, the traffic load in the old districts of Moscow was significantly reduced.

The developing "Yuzhny Port" will allow new transport hubs to operate on its territory. A transport hub will be built here, which will receive a name similar to the project under consideration. By 2025, a station called "Yuzhny Port" will operate in its industrial zone. It will be allocated a section between the metro stations "Kozhukhovskaya" and "Pechatniki". It is planned to equip a pier where water trams will arrive. An improved cable car will cross the Moscow River. Large residential complexes "River Park Kolomenskoye" and "Zilart" will appear near it. From here it will not be difficult to get to the "second City".

Profitable for investors increase in real estate prices

"Second City" is capable of causing an increase in prices for real estate objects located in nearby locations. At one time, a similar phenomenon was also observed in areas adjacent to Moscow-City. The creation and commissioning of this business center provoked an increase in prospects for ZAO, which received especially favorable transport and road communications with it.

The location near Moscow City and the spectacular views of this complex are considered important advantages for ZAO. This direction is chosen by many developers for the purpose of constructing objects classified as high-class housing.

Thanks to the reconstruction of the "Yuzhny Port", markets from nearby locations will be able to develop more actively. This will also allow to increase the class of residential complexes built in them (Nagatinsky Zaton, Pechatniki, etc.).

In the area under consideration, it is planned to build real estate objects with a total area of 7.5 million m². To carry out construction work, it will be necessary to spend at least 380 billion rubles. The built areas have every chance of getting a price 10-15% higher than other areas located on the outskirts of the capital.

D. Starostin, representing the well-known company Aeon Development, shared his opinion: “People looking for housing in the capital should consider how promising Yuzhny Port is. Buying real estate in the areas adjacent to it is quite capable of generating interest from investors, since the emergence of a new business center always leads to an increase in demand for nearby residential properties. This pattern is confirmed by the example of the River Park Tower Kutuzovsky project, which occupies Dorogomilovo (an area adjacent to Moscow-City). Clients who own local real estate are mainly successful businessmen and managers. Growing demand for housing will inevitably take place in Yuzhny Port, which will include a modern quarter called River Park Kolomenskoye. Real estate acquired here can be resold profitably in the future.”

The emergence of a new rental market

In terms of future business activity, Yuzhny Port will be a worthy alternative to both Moscow-City and the historically established center of the Russian capital. The following is planned for this location:

• creation of extensive commercial real estate;

• growth of the local population to 40,000 (20,000 visitors are also expected);

• increase in the number of jobs (at least 5,000);

• opening of all kinds of institutions.

Active demand is expected from the highly qualified workers employed in this area. However, such specialists will not necessarily start purchasing housing located near the Yuzhny Port. The cost of local real estate can reach a premium level. This will be a significant incentive to search for housing located at some distance from the Yuzhny Port. An increase in demand for long-term rent is quite expected.

These trends should be taken into account by investors who purchase real estate for subsequent rental purposes. This will allow them to count on a constant profit.

Interest from tourists

A rich infrastructure of cultural and entertainment focus will be created for the "Yuzhny Port", which will be its important difference from Moscow-City. There is a 13-kilometer coastline here, which is the longest in the entire capital, serving as an excellent place for developing exciting routes. This project intends to include a club for yachting enthusiasts, cafes and restaurants, mobile stages, etc. The local embankment is guaranteed to attract both Muscovites themselves and guests of the metropolis.

Given this, it is quite natural to expect a significant increase in demand for short-term rentals in the Yuzhny Port. Despite the fact that the project envisages the development of comfortable hotels, this territory will attract numerous tenants. At the same time, they will not strive to stay in elite hotels. Short-term rentals will be more in demand. Demand for them will increase from foreign and domestic tourists, business travelers.

L. Artsybasheva, who holds the position of Commercial Director at Regions Development, shares her opinion: “Yuzhny Port should be approached as a successful addition to the capital’s entertainment complex, Dream Island, which occupies the other bank of the Moscow River. This complex is one of the largest indoor amusement parks in modern Europe. A huge number of tourists constantly arrive here. This property is also of interest to buyers of real estate for family living. At least 55% of clients who became owners of real estate in Dream Towers preferred it because of its direct connection to Dream Island. In the future, the infrastructure of Yuzhny Port and this complex will act as a harmonious complement to each other, which will attract many tenants and clients wishing to acquire family real estate.”

Growing Prestige of the South-Eastern District

Thanks to the spectacular project planned for the "Yuzhny Port", the entire appearance of the South-Eastern District of the capital that it occupies will change. The territory of the former industrial zone will be occupied by:

• luxury housing;

• entertainment establishments;

• objects created for social and commercial needs.

Business-class projects will be implemented in this place, contributing to the transformation of the social composition of the local population. Active improvement, known as gentrification, will begin.

During the latter, a “domino effect” is observed. After one of the locations is transformed in the best possible way, a similar process will affect the rest of the territory. Other areas and neighborhoods will be replenished with additional jobs. New businesses will open. As for the housing supply, its structure will shift from public projects to options representing more expensive premium and business classes.