Rising property prices have changed the urban environment and the habits of residents

Rising prices for housing and commercial premises are changing the urban environment, displacing small businesses from sought-after locations and affecting the lifestyle of citizens. Konstantin Zemskov, Deputy General Director of the investment company Activo, told Izvestia on May 31.

Price dynamics in the area

According to the investment company "Activo", the operation of commercial real estate has increased in price by 14-25%, depending on the region and the type of facility. According to Zemskov, costs are rising due to a shortage of labor resources and the cost of importing materials, outpacing the growth rate of income.

Perestroika of the century: how not to lose collateral after reconstruction

The modification of the object does not stop the mortgage encumbrance

In Moscow, rental flows in shopping malls are increasing by 8-11%, while in the regions this figure is about 5%. A more optimistic situation is observed in the office segment of the capital, where rental indexation reached 15% with a 10% increase in operating costs.

Crowding out small businesses

As the expert noted, the high cost of rent leads to the fact that large federal networks displace local projects from compact premises. Convenience stores and fast food chains are replacing designer workshops and niche coffee shops, as landlords prefer to work with more crisis-resistant partners.

Impact on the lives of citizens

According to Zemskov, residents of megacities are forced to choose between comfort and the cost of housing, moving to remote areas or reducing the area of apartments. The increased travel time to work creates additional physical and psychological stress, which negatively affects the quality of life of the population.

Domestic impotence: the price gap between new buildings and secondary buildings has reached 90%

Can demand in the primary market collapse and how can developers avoid it?

At the same time, business activity is gradually shifting to new areas outside the historical center. Businesses find more affordable rental rates there, and citizens get the opportunity to work close to home, although the shortage of quality space in the center continues to provoke further price increases.

The future of the real estate market

In the coming years, demand for flexible real estate formats such as coworking spaces and multifunctional spaces is expected to increase. Large retail areas are being actively converted into fitness centers, medical services, and compact offices, which are easier to adapt to current business needs.