Russia Leads Real Estate Growth in Retail Sector
According to GFK Geomarketing, Russia currently is the largest market in Europe with the third largest retail turnover in EMEA (Europe, the Middle East and Africa) after France and Germany.
Growth has been experienced in every segment from discount to luxury.
Russia is currently the fastest growing market for luxury goods. Quality retail developments are steadily replacing low quality retail space. Its retail property market has a growing number of projects in the pipeline.
A shortage of quality retail stock limits further expansion and new quality shopping centers typically open in cities and regions where retailers are eager to expand.
Challenges include attaining operational effectiveness and cost reduction, shortage of good retail space, warehousing, logistics and supply chain management, as well as potential accession to the WTO.
The Russian retail property market is still emerging but gradually moving into a developed market.
Supported by new formats, this includes outlets and retail parks which are being introduced and launched not only in Moscow, but also in other cities.
Quality retail stock consists of more than 500 shopping centers, with a total gross leasing area (GLA) of 15.4 million square meters as of Oct. 1, 2012. About 100 projects are under construction in a retail pipeline that totals 4.6 million square meters. One square meter is about 10.76 square feet.
According to “The World in 2050”, PricewaterhouseCoopers International’s report about the accelerating shift of global economic power, Russia leads in projected relative income per capita among the seven largest countries with fast developing economies.