In 2023 we saw record low newly commissioned retail space in the capital city for the last 20 years, with only four shopping centers having the aggregate floor area of 50,700 sq m entering the retail market.

Despite the high vacancy rate at the turn the year, when this indicator reached 15.6%, the vacated spaces quickly found new tenants. During 2023, twenty-seven new foreign brands entered the Russian market. New players mainly arrived from Turkey, Lebanon and Belarus. Russian brands also demonstrated high growth rates. In addition to quantitative expansion, retailers increased the size of their shops and widened the variety of goods.

Given that fashion retailers are still bent on aggressive expansion as well as the record low commissioning of shopping centers in recent years, we expect a scarcity of retail space for expansion across Russia, which will lead to the rotation of current players and growing demand for quality facility management.