State of industrial-use land market in the capital

“State of industrial-use land market in the capital” (“Sostoyanie rynka zemli promyshlennogo ispolzovaniya v stolitse”), Russian Real Estate, 23 June 2010.  23 July 2010 http://www.1rre.ru/news/doc/40071/.

Less than 500 hectares of Moscow suburban (less than 15 km outside of MKAD) lands zoned for industrial use are being sold this year, which is half as much as before the crisis.  A large portion of the lands in the 10-15 km zone had been sold before the crisis: they were often bought to be resold, and were always taken as collateral for loans.  Before the crisis, about 10% (100 ha) of the land area on the market would have been purchased, though this year, that figure could go as high as 60% (300 ha), as capital-holding investors will purchase the land to sell it after the crisis is over.  The most attractive plots are those on which it will be easy to begin construction, or otherwise are already built-up (i.e. business parks).  Moderate price increases are forecasted.  The average cost for 100 m2 of land (usually purchased in 2.5-5.0 ha plots) 15 kilometers from the MKAD is $6,000-7,000; before the crisis, land was sold in plots larger than 5 hectares for at least $20,000 per m2.

Also: “Amount of transacted land on industrial market will rise to 300 hectares,” Commercial Real Estate, 22 June 2010. 26 July 2010 http://www.cre.ru/rus/archivnews/0/0/14568/.  Analysts of Management Company “Absolute Management” predict that sales of lands located in the 30-kilometer zone from the MKAD could rise to 300 hectares this year. Before the crisis, 500 hectares were annually put up on the market; this number decreased to 100 during the crisis.