In Q3 2023, the construction of three projects was completed. Two projects cropped up in the business core of the city, namely M22 office building (Central district) and Tesla (Vasileostrovsky district). One more facility is located in Primorsky district, namely BC Sabirovsky.

The office property market continues to develop. High business activity of tenants contributed in the vacancy rate. We expect vacancy to decline further amid the high activity of Russian IT&T companies, companies with a large share of state participation, as well as those expanding their businesses in the midst of the current window of opportunity.

The quality of buildings and fit-out is one of the main factors when making an office selection decision. Tenants who rent up to 500 sq m prefer ready-to-move-in premises with fit-out, while major companies opt for unfinished premises with a discount in the amount of the cost of the basic fit-out package offered by the landlord.

At the moment we observe the interest of end-users in the purchase of office buildings. Representatives of successfully developing businesses are interested in switching from rent to acquisition of office space, to save their money. Such a low number of completed office purchase transactions in Q3 can be explained by the fact that most companies made a decision to buy an office at the beginning of the year, and by the fact that the cycle of such transactions ranges from 9 to 12 months, on average.