Centrifugal Pull

It is not everybody’s business to deal with City development in all its facets. Usually the restrictions by the existing planning or even financing are limiting the phantasies of developers. From this point of view it was interesting to follow the interview with Aras Agalarov as one of the most successful developers in Moscow, or shall I say Moscow region?

By reading the article I also realized again the “small” difference in real estate developments in Moscow compared to those in Moscow region in terms of uncertainties with regard to permissions. Projects outside the MKAD seem to have not been touched by the changes in administration as we have seen with the Moscow authorities. Is this supporting a trend? It might be easier to handle town planning and offer opportunities to investors outside the city rather than to handle the more complex questions related to permissions of commercial real estate projects which are now under the risk to be revoked in the very centre of Moscow. At least Mr. Agalarov found his way and is smiling about the questions of the journalist.

I also found that AFI’s recommendation to go to the regions was in the similar trend. With their developments in Moscow city and Tverskaya plaza which have been focused on the retail and office market they are now approaching the regions in the hospitality and leisure sector. A good idea I think, as we understand the demand in that specific sector and the rationale behind those investments quite well. Back to Moscow I liked also the article about the status of the Park-City project. A good sign that the government is starting to accept commercial projects only if certain aspects of town planning are taken into account and the concept fits to the existing urban district. Both cover story and the hot topic section are picking up the fact that thousands of buildings in the city’s historical centre have been demolished in the past to be replaced with new ones on a very commercial base. Good for certain investors, bad for the long term attractiveness of Moscow. I personally like the architecture and the style of the old parts of Moscow and was hoping that many of that buildings will find investments for refurbishment rather than for replacement.

Many thanks to the editors of CRE to provide me with the chance to read and comment before publishing of this version. I enjoyed as usual!