Highlights and prognosis of the Russian warehouse real estate market in 2021-22

Special report by analysts of ORIENTIR developing company for CeMAT RUSSIA exhibition

• According to the results of the Q3 of 2021, 34% of all leased warehouse space is rented for the needs of online retail. For the Q1 of 2022 the share may already be more than 50%.

• In the coming years, the e-commerce sector will continue to develop at a faster pace. Data Insight analysts expect the industry in Russia to grow by 34% in next 3 years. Such strong growth potential can push companies to search for advanced technological solutions. On this background, infrastructure facilities that are created for the needs of online giants are of particular importance. An increasing number of people will be employed in online retail, and along with this, the social responsibility of e-commerce to its customers, employees and society as a whole will grow.

• The demand of warehouse facilities on the market is really colossal, but at the same time, since the beginning of this year, the cost of objects has increased by an average of 30%, and rental rates - by only 10%. Taking into account the low marginality of the sector, the market needs to promote the growth of rental rates in order to preserve the warehouse business as a sector as a whole.

• There is an increase of developer activities. High volume of new objects is expected in 2022, most of which will be sold for specific customers, and not speculatively.

• By the end of 2021, the total volume of new construction in the warehouse segment of the Moscow region will exceed 1 million sqm and will be a record for five years.