2024 was a year of transformation for the Russian office real estate market, setting new records and setting ambitious prospects. The volume of lease and sale transactions increased to 1.9 million square meters, up 3% from last year, according to Irina Khoroshilova, head of the office real estate department at Core.XP. However, the main discovery of the year was the rapid growth in the share of sale and purchase transactions, which reached a record 40%, significantly outpacing the 2023 figures (24%).
The Office Real Estate Market: From Lease to Ownership
The market is seeing a shift in priorities. Office sales reached 710,000 square meters, an all-time high. The primary buyers were end-owners, who accounted for 84% of transactions. The remaining 16% (approximately 110,000 square meters) were acquired by investors. Among the largest transactions of the year were the purchase of the Moscow Towers business center (263,000 square meters) for Russian Railways and the acquisition of the Slava business center (144,000 square meters) by the Central Bank.
Moscow City: From "Empty Glass" to Elite Deficit
Just a few years ago, Moscow-City was associated with oversupply. But over the past five years, the situation has changed dramatically: the vacancy rate has plummeted from 44% to a historically low 1.4%. Alexey Efimov, CEO of IBC Real Estate, recalled at the "Year in Review" conference how vast areas of Moscow-City recently stood empty: "We saw 44% vacancy rates. Now it's 1%. The shortage is obvious."
It is noteworthy that more than a third of the office space (35%) in Moscow City is occupied by state-owned companies, which continue to actively strengthen their positions in key business locations across the country.
The Future of the Big City: Growth Without Limits
Against the backdrop of Moscow City's saturated landscape, neighboring Bolshoi City is demonstrating ambitious growth plans. As Ekaterina Nogai, Head of Research and Analytics at IBC Real Estate, noted, this zone "has no boundaries." She predicts that by 2035, the supply in the area will increase from the current 2.7 million square meters to 6.2 million square meters, opening up new opportunities for businesses and investors.
Market turning point
2024 marks a paradigm shift: the market has begun to transition from a long-standing dominance of rentals to active buying and selling. The office space shortage, particularly in prime locations, is intensifying, and the prospects for the Big City make it the main arena for future development. These changes not only cement current records but also lay the foundation for the next era of the Russian office market.
