Enterprises are driving a surge in inventory growth, while developer activity remains subdued and demand remains pent-up. In the Moscow region, the share of idle or vacant warehouses has fallen to a rare low, signaling a tighter market and stronger utilization of available space across the area.
There is also an expectation that rental rates for warehouse space in the capital region could climb by more than forty percent. This projection aligns with current market signals, where demand for storage and logistics facilities continues to outpace supply in many submarkets.
Trading volumes have hit record highs, and recent data shows that the Moscow and Moscow region total turnover reached about 2.2 million square meters over a three-month period, up about 2.5 times from the previous year. This pace underscores a sustained push by retailers and manufacturers to secure capacity for distribution and inventory management, even as other sectors adjust to shifting macro conditions.
The observed dynamics are not exclusive to Moscow. Across Russia, the market has broadened in response to expanding e-commerce activity and the need for regional hubs to support last-mile delivery, cold storage, and cross-docking operations. The current trajectory points to a broader trend of rising warehouse utilization and elevated rental income as occupancy remains high and new supply remains constrained in several regions.
On a countrywide basis, the average rental price for warehouse space has increased, reflecting a general uplift in logistics real estate markets. This rise is not uniform; it varies by region, with some areas experiencing sharper price movements driven by local demand drivers and the availability of quality industrial sites. The market has shown that a substantial share of regions is reporting higher rent levels as buyers compete for modern facilities with better access to transport corridors and urban centers.
Looking ahead, market participants anticipate some stabilization in 2024 as price growth and lending conditions influence deal activity. The pace of price increases may moderate as insurance costs, financing terms, and cap rates adjust to the evolving risk environment, while developers reassess affordability and project timelines in light of shifting capital availability.
Additionally, the retail and logistics landscape has recently seen notable developments, including the entry of new shopping formats and the expansion of large-format retail spaces. These shifts contribute to a stronger demand for warehousing near key metropolitan markets and along major transport routes, reinforcing the role of logistics real estate as a critical asset class for sustaining supply chains in a rapidly changing retail environment.
Overall, the market remains characterized by robust demand for storage and distribution facilities, tempered by the need to balance price growth with the availability of quality space. Market watchers continue to monitor leasing activity, new construction starts, and the mix of tenant types to gauge how the supply-demand balance will evolve in the coming quarters.