From January to March 2022, commissioning of shopping centers in Moscow reached 17.5 thousand square meters of the gross leasable area. This represents a 56% decrease of the new supply year-over-year.
Taking into account the size of commissioned objects, the level of provision of Moscow residents with high-quality retail space has changed insignificantly and amounts to 571 square meters per 1,000 people.
At the end of the quarter, an increase in the level of vacant space in Moscow shopping centers was recorded up to 13.3% (1 percentage point higher than in the 1st quarter of the previous year).
Given the challenging geopolitical backdrop, disruption to supply chains and inventory issues that will affect retail development and the well-being of operators themselves, new supply in the market is currently expected to fall by about a third year-on-year in 2022.
The market supply of new or renovated shopping centers is a key factor shaping the demand for professional retail furniture, in short to medium terms. We are tracking this indicator more closely within our extended Market Reports.