‘Green’ building market in Russia experiencing growth
Dec 14, 2016 10:59 am
Russia’s ‘green’ building market surpasses 3.6 mln sq m, however, it still accounts for a rather small portion of the overall commercial real estate market
Over the last two years, Russia’s ‘green’ building market nearly doubled, increasing, since 2014, by 1.7 mln sq m and now totaling over 3.6 mln sq m of real estate certified to international sustainability standards, according to JLL’s study.
A record-breaking amount of ‘green’ building (1.1 mln sq m) was certified under international standards in 2015. In Q1-Q3 2016, the total amount of real estate has increase by 627 thousand sq m.
“Last year’s peak had to do with completed certification of a number of large projects, including stadiums and warehouses. In 2016, there have been fewer properties of that kind among certified objects, and new construction generally slowed within the country, therefore, we are witnessing modest results now,” said Ksenia Agapova, Head of Sustainability Services, JLL, Russia & CIS.
The Moscow Region leads in terms of amount of certified buildings with a total of over 2.2 mln sq m, or 54 buildings, followed by St. Petersburg with 310 thousand sq m, or 13 buildings.
The JLL study also envisage that over the third of the certified space accounts for offices (1.2 mln sq m); while warehouses/industrial assets and sports objects accounts for 23% (or 0.8 mln sq m) each.
Shopping center developers and retailers are also becoming more interested in ‘green’ building standards; it is a distinctive trend, which has to do with changes in legislation in the West and social and environmental reporting to which many multinational retailers are bound to respect, according to JLL.
However, ‘green’ market still accounts for a rather small portion of the overall commercial real estate market in Russia. In Moscow, only 5% of the total offices falls on certified ones, as are 6% of warehouses; while in St. Petersburg the figure is under 7% for offices and zero for industrial premises. According to JLL, there is certainly room for further ‘green’ growth in the country’s commercial real estate market.
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