Mar
9
Commercial Property in Belarus
March 9, 2008 |
Although commercial property market in Belarus is in its formation stage, it undoubtedly has a great potential and therefore is attractive for both domestic and foreign investors. However, the lack of foreign transnational companies that set high demands for the quality of business-centres and offices appreciably hinders its development.
According to “National centre of commercial property realization”, the overall volume of real estate purchases in private ownership in the office segment of the market constitutes 60-70, 000 square metres a year. The percentage of vacant rent areas in business centres, which are put up for sale at market prices, is not higher than 5 %. The most suitable for rent offices that meet all the necessary requirements, either never come onto the market or find their owners in the first two or three days.
Taking into consideration the positive trends in the economy’s development of the Republic of Belarus and high demand but low supply of office rent areas one can forecast that demand saturation can hardly happen at an early date.
Among the most active investors on the Belarusian market of commercial property are companies from Russia (Business centre “Capital”, business centre “Alexandrov Passage”), Lebanon (Business centre “Europe”, business centre on Dzerzhinsky Avenue, Minsk; the director is Abdo Romeo Abdo, who is a graduate of International Institute of Economy and Law in Minsk), and Iran (Business centre Individual enterprise “Keison”).
It is worth paying attention to the fact that what attracts foreign capital are short recoupment terms and quite high level of projects’ profitability compared to that in Western Europe. On average, recoupment terms of commercial property constitute seven to eight years with the growth of shared building prices in this segment not exceeding 20%. Thus, at present commercial property plays one of the leading roles in mobilizing foreign capital into Belarus.
Get more details at http://abdoromeoabdo.net
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