The Russian industrial real estate market has been demonstrating resilience to crises and the past year confirmed the given trend once again.

The scale of new construction, bolstered by the activity of marketplaces in 2023, reached its historical maximum at 4.2 million sq m. Total quality storage space supply in the country has hit 47 million sq m. The demand was also high, having shown the second best result for all the years of observations - 5.3 million sq m, to be more exact. For two years in a row already, demand outstrips supply, which is reflected on the vacancy rate that at the end of 2024 came to 1.0%, having increased by 0.2 p.p.

The macroeconomic situation and market environment put a notable pressure on the growth of rental rates, which consistently renewed historical maximums quarter after quarter. In Moscow, which remains the key national sales market, the asked weighted average base rent is already approaching 13,000 RUB/sq m/year.

The year 2025, most likely, won’t be easy. Preservation by the Bank of Russia of the annual average key rate at a critically high level will certainly impact both the business activity of the market participants and the business environment at large.