A new, promising district covering over 400 hectares will be built in the industrial zone associated with the Yuzhny Port. This development is currently referred to as the "Second City."
On January 25, 2023, during a press conference discussing the expansion of polycentrism in Moscow, renowned architect S. Kuznetsov shared details regarding the upcoming project. Representatives of Metrium outlined their vision for how the development of the Yuzhny Port will impact the Moscow real estate market and the entire metropolis.
Changing transport situation
The planned innovations at Yuzhny Port align with the concept of a decentralized metropolis, a hub of social life. Moscow has two such spaces: its historic center and the Moscow-City International Business Center. For a particularly large city, such decentralization is insufficient, resulting in a high concentration of transportation and citizens in the central area, significant gaps in employment, and the availability of modern infrastructure across various locations.
The emergence of the “second City” will provide an opportunity to:
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reduce the volume of traffic in the city center;
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create favorable conditions for the formation of a new point where various types of activities will be carried out.
All of this was observed after the launch of Moscow-City, whose office space was actively filled by companies representing the historical center. As a result, traffic congestion in older parts of Moscow was significantly reduced.
The developing "Yuzhny Port" will allow new transportation hubs to operate within its territory. A transport hub will be built there, bearing the same name as the project under consideration. By 2025, a station called "Yuzhny Port" will open in its industrial zone. It will occupy a section between the Kozhukhovskaya and Pechatniki metro stations. A pier is planned for water trams to dock at. An improved cable car will cross the Moskva River. Large residential complexes, "River Park Kolomenskoye" and "Zilart," will be built nearby. From here, access to the "Second City" will be easy.
Investor-friendly rise in real estate prices
"Second City" is capable of driving up real estate prices in nearby locations. A similar phenomenon was previously observed in areas adjacent to Moscow-City. The creation and commissioning of this business center has boosted the prospects for the closed joint-stock company, which has gained particularly favorable transport and road connections.
The complex's proximity to Moscow City and spectacular views are considered key advantages for the Western Administrative District. This location is being chosen by many developers to build high-end residential properties.
The reconstruction of Yuzhny Port will allow for more active development of nearby markets. This will also allow for the upgrading of residential complexes built within them (Nagatinsky Zaton, Pechatniki, and others).
The area under consideration is planned to be built with real estate developments covering a total area of 7.5 million square meters. Construction will require at least 380 billion rubles. The completed areas have a good chance of commanding prices 10-15% higher than other areas located on the capital's outskirts.
D. Starostin, representing the well-known company Aeon Development, shared his opinion: "People looking for housing in the capital should consider the prospects of the Yuzhny Port district. Acquiring real estate in the surrounding areas is quite likely to attract interest from investors, as the emergence of a new business center always leads to increased demand for nearby residential properties. This pattern is confirmed by the example of the River Park Tower Kutuzovsky project, located in Dorogomilovo (a district adjacent to Moscow-City). Clients who own local real estate are primarily successful businessmen and managers. Growing demand for housing will inevitably also occur in the Yuzhny Port district, which will include the modern quarter known as River Park Kolomenskoye. Properties purchased here will be able to resell 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 historical center of the Russian capital. The following is planned for this location:
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creation of extensive commercial real estate;
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local population growth to 40,000 (20,000 visitors are also expected);
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increase in the number of jobs (at least 5,000);
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opening of all kinds of institutions.
Strong demand is expected from highly skilled workers employed in the area. However, these professionals won't necessarily purchase housing located near Yuzhny Port. Local real estate prices could reach premium levels. This will provide a significant incentive to seek housing located further away from Yuzhny Port. A rise in demand for long-term rentals is also expected.
These trends should be taken into account by investors purchasing real estate for subsequent rental purposes. This will allow them to count on consistent profits.
Interest from tourists
Yuzhny Port will feature a rich cultural and entertainment infrastructure, which will be a key differentiator from Moscow-City. It boasts a 13-kilometer coastline, the longest in the entire capital, providing an excellent venue for developing exciting routes. The project plans to include a yachting club, cafes and restaurants, mobile stages, and more. The local embankment is guaranteed to attract both Muscovites and visitors to the city.
Given this, it's entirely reasonable to expect a significant increase in demand for short-term rentals at Yuzhny Port. Despite the project's inclusion of comfortable hotels, the area will attract numerous tenants. However, they won't be looking for luxury accommodations. Short-term rentals will be more popular, driven by increased demand from international and domestic tourists and business travelers.
L. Artsybasheva, Commercial Director at Regions Development, shares her opinion: "Yuzhny Port should be viewed as a successful complement to the capital's Dream Island entertainment complex, located on the other bank of the Moscow River. This complex is one of the largest indoor amusement parks in modern Europe, regularly attracting a huge number of tourists. This property is also of interest to buyers of family-friendly properties. At least 55% of clients who purchased property in Dream Towers chose it because of its direct connection to Dream Island. Going forward, the infrastructure of Yuzhny Port and this complex will complement each other harmoniously, attracting many tenants and clients looking to acquire family property."
The growing prestige of the South-Eastern District
The spectacular project planned for Yuzhny Port will transform the entire appearance of the capital's South-Eastern Administrative District it occupies. The former industrial zone will be occupied by:
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luxury housing;
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entertainment establishments;
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objects created for social and commercial needs.
Business-class projects will be implemented in this area, contributing to a transformation of the local population's social makeup. Active improvement, known as gentrification, will begin.
During the latter process, a "domino effect" is observed. Once one location is optimally transformed, a similar process will affect the rest of the area. Other districts and neighborhoods will be filled with additional jobs. New businesses will open. As for housing supply, its composition will shift from publicly available projects to more expensive premium and business-class options.
