Minsk office rental rates drop to 9 year minimum

The average cost of renting offices in Minsk fell to its lowest in nine years - 17.7 euros including VAT per square meter, said the project manager of the "Your Capital. Real Estate for Business" (Tvaya Stalitsa) agency Natallia Novikava.

Prior to that, similar low rates for office space were only in the second quarter of 2006. "However, the commercial real estate market was just forming, and there were very few interesting office buildings. Now, on the contrary, the tenants have plenty to choose from. It is mostly the market glut that brought down rental rates in the first half of this year," the expert told BelaPAN.

According to her, since the beginning of the year, the rental rates for offices in Minsk  have decreased by approximately 20%. Currently, square meter in Class A business centers costs 24 euros including VAT, class B - 17,5 euros, class C - 12,5 euros. At the same time transaction market rates may be lower than 10%. The most favorable conditions are offered by the owners of new facilities, which "set the tone in the market", said the representative of the group of companies "Your Capital".

More than 18 thousand sq.m. of office space have appeared in Minsk since the start of the year. Before the end of the year there is expected to appear 128 thousand sq. m. more. There are a number of landmark office building in Minsk such as a 26-storey multifunctional complex "Titan", a business center with SPA Riviera Plaza, a 17-storey office building "Tivoli", business centers "Krasavik", "Arlan" and Mercure.

Photo: pora-valit.livejournal.com