Last year was a period of turbulence for the Moscow office market and other sectors. Business activity in general and sold/let office space sagged by 17% year-on-year, with total demand standing at 1,292 thousand sq m. Nevertheless, it is worth noting that changes of key indicators are not dramatic, thus demonstrating maturity of the market and its resilience even in times of turmoil.
As a result, the vacancy rate was not as dismal as had been credited in spring 2022. With some office projects postponed until next years (only 340 thousand sq m were commissioned during the period under review), and the demand generally at the average level of the previous 10 years, the vacancy rate remained acceptable. Moderate growth in vacancies did not lead to plummeting rental rates which stabilized at RUB 21,203/sq m/year.