Expert opinion: what does a client choose on the real estate market?

Expert opinion: what does a client choose on the real estate market?
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Stanislav NAUMOV, co-founder of the CERA GROUP construction company

About three years ago, at the beginning of the crisis, business had to optimise its expenditures, including office rent payment. Many companies moved to business centres for more advantageous rent conditions, thus reducing their expenses. In spite of that the commercial realty market continued to decline. 

Under such conditions the owners of business centres had to look for other ways to attract tenants, especially when it came to new objects. A tendency to let finished and decorated offices began to appear. Before 2014, the spaces in business centres were let in their shell and core condition. Presently, the number of offices that are in an almost ready to use finished condition is growing. 

A trend of creating an office for a definite tenant (meaning a design project that is also decorated) has been developing lately. As a rule, the owners of business centres use subcontractors and pay them according to the average price of standard finishing on the market. The price of an individual order is slightly higher than a standard one, and a tenant gets a comfortable office tailored to the needs of the company. 

Another trend is the increase of the number of companies dealing with non-standard business. Amusement operators’ share in trade centres is growing, both for children and adults: artificial climbing walls, mini-zoos, bowling centres, fitness centres, professional towns for children, bouncy castles, etc. 

Due to the decrease of the population’s incomes, the rivalry between trade centres has grown, and the TC owners are thinking of new ways to attract purchasers. People visit shopping and recreation centres to meet each other, to  spend their leisure time and, possibly, to buy something. 

Additionally, trade centres began to develop so-called gastronomical strategies - markets with healthy food products. However, there is no serious redistribution of contracts between office and commercial realty. Their number has neither decreased nor increased in any of the sectors, but they are undergoing modification. 

In 2017 there is a growing tendency for the construction of  comfort-class and business-class housing (both flats and apartments) which are already finished, decorated and furnished. The thing is that the demand for this kind of housing is increasing, and buyers save money and time. 

Moreover, it is more comfortable to live in such residential compounds. Such projects were not very profitable before, but the situation has changed and developers order expensive and quality finishing. This trend will continue to develop. 

All the above mentioned trends are driven by one general tendency — the optimisation of saving and expenditures both by business structures and clients. Developers try to economise on construction using cheaper materials and equipment whilst striving not to compromise the quality. Office tenants rent smaller spaces, and common customers prefer buying housing that is ready to move in to.