Kazan is a member of Russia's largest commercial real estate markets

Capital of the Republic of Tatarstan in terms of «real estate» development discussed during the «The real estate market» roundtable, which took place on March 5, 2014 as part of a «Invest in Tatarstan» Winter Forum.

In roundtable was presented the market of convention and exhibition centers, new formats of housing and popular segments of residential property are designated, as well as an effective implemented examples of office and retail real properties. Elena Stryukova from Cushman & Wakefield company  moderated the roundtable. The discussion was attended by Cushman & Wakefield Head of Hospitality and Tourism Marina Smirnova, Cushman & Wakefield Head of research Department Denis Sokolov, JSC «AK BARS Development» Deputy CEO Sergey Urakov.

JSC «Tatarstan Development Corporation» CEO in discussions told about investment opportunities in real estate within the Kazan Smart City project. He also noted that at the end of 2013 completed the development of a master plan and presented the main areas of the project.

Cushman & Wakefield Partner, Head of the Research Department Denis Sokolov presented to the participants of the roundtable the results of research in the field of real estate in Russia. In particular, it was noted that Moscow, St. Petersburg, Novosibirsk, Kazan, Yekaterinburg and Nizhny Novgorod includes in the composition of the largest regional office markets in Russia. In Kazan the total office area is about 450 thousand square meters.

Cushman & Wakefield Head of Hospitality and Tourism Marina Smirnova noted that 70% of all convention and exhibition centers of the country are located in Moscow. Following the capital of Russia goes St. Petersburg.

In Kazan, noted expert, only 30% of the exhibition centers have an international standard. But the demand to the exhibition centers grows annually by 30%.

JSC «MC «Idea Capital» Deputy CEO Elena Khairullina presented «Himgrad» technopolis as the first Russian certified industrial park. She noted that to the work on the development of the project were involved German partners from Frankfurt am Main.

Discussions of office real estate in the second part of the roundtable went towards residential real properties. More information about this market segment told JSC «AK BARS Development» Deputy CEO Sergey Urakov. He said that residential real estate market structure offers 16% (77 thousand rubles 1 sq. m.) business-class, 2% (115 thousand rubles - sq. m.) – premium class, 82% (50 thousand rubles –sq. m.) - economy class. Besides this Mr. Urakov told about the company's projects - the «Sunny Beach», «Shiny valley», «Clear Skies» and «Seventh Heaven» complexes.

Construction financing based on the principles of Sharia offered «Baker Tilly» Head of Tax Practice Rustam Vahitov. He also noted the experience of Ak Bars Bank to attract Islamic finance. «There are still doesn’t exist deals attracting Islamic finance in real estate, but I think there is no problem for its development».

Tatarstan Investment Development Agency Press Service