Moscow’s development market slows down. Commercial real estate is no longer scarce in the Russian capital. Develop-ment will be restricted by both limited demand and administra-tive restrictions imposed by the Moscow administration. We expect a further slowdown in office construction and similar volumes in shopping centers.
Moscow transformation. City government had clearly changed priorities in city development. For years Moscow was viewed as a ―cash cow‖ city that concentrates the financial power of this large country. Now the city administration is more focused on the quality of life of its citizen. They began with an office construction ban in the Downtown, followed with parking restrictions in the city center. Further parking and car usage limitations are expected in coming years. More attention is now given to parks and public spaces. In some cases planned offices are replaced with hotels or even parks.
Decentralization 2.0. Downtown with high rents and con-gested traffic will become less attractive for bigger corporations who will look for cheaper options. Stagnating residential prices and a tight labor market will improve the mobility of people so out of town offices where residential space is cheaper may be-come a good option for work. Unlike the first wave of decen-tralization that was driven by speculative factors, the second wave will be driven by quality of life considerations.