Moscow may soon be back on the list of most expensive cities, thanks to Tverskaya Street, which is recognized as one of the most expensive streets in the world.
Experts believe that, in two years, a shop in Champs-Elysees will be cheaper for a retailer to rent than one in the Russian capital.
At the moment, commercial real estate owners on Moscow’s most expensive street set the price for their premises at $8,000 per square mile.
However, this growth in real estate prices no longer shocks retailers: They were back on Tverskaya in 2012 and went on to take up premises on other expensive streets of Moscow (Stoleshnokov and Kamergersky, for example).
For some retailers, rental fees for in 2012 reached $10,000 per square mile annually, according to Knight Frank. This leaves a minimal gap of no more than $1,000 with Milan and Paris, while the European economy is in recession.
In a year or two, Moscow will once again be in the top 10 of the world’s most expensive cities, predict Colliers International.
“If Moscow was at the pre-crisis level now, it would come in fourth in the rating,” says Vladimir Sergunin, the business development director at Colliers International.
Before 2008, rental fees reached $15,000 per square mile. In the wake of the economic crisis, the real estate rates on Tverskaya lost much in value. By the end of 2009, the rental feeshad reached $3,757, and, in 2011, they were at $7,406 per square mile.
Comparing that with London in 2011, retail premises could be rented for $15,070 per square mile annually in the British capital. Rental fees for the same year were $13,700 in Paris, $10,000 in Zurich, $9,870 in Milan and $7,910 in Geneva.
A special investigation by Vedomosti found that the largest real estate owners on Tverskaya are the Gutseriev family, the Kazakh businessman BulatUtemuratov, and Russian entrepreneurs IlyaKaletkin and YakubYakubov.
First published n Russian in Vedomosti.
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