Rental costs in Moscow have surpassed those in New York City and London.
In Moscow, the rental rates for Class A offices soared by 17% year-on-year, according to recent figures. This growth outpaced other major global cities such as Dubai (+15%), London (+11%), New York (+2%), and Hong Kong (-2%).
Despite this significant leap, Moscow's office rents remain comparatively affordable, averaging 45,000 rubles per square meter per year for Class A premises. In comparison, rental rates in Dubai were 57,000 rubles, New York 90,000 rubles, and Hong Kong 91,000 rubles in 2024. London had the highest office rent, at 145,000 rubles per square meter per year.
Vasily Grigoryev, Director of the Market Research Department at CORE.XP, attribute the escalating rental rates in Moscow to a high demand for quality offices and a limited supply. According to him, up to 80% of the area in the capital is sold even before the buildings are operational.
By February 2025, the average weighted cost of renting Class A office space in Moscow was 29,400 rubles per square meter per year, marking a 5% year-on-year increase, as reported by "Kommersant," citing data from IBC Real Estate consulting company. The most expensive locations for office rent were within the Garden Ring and on the territory of "Moscow-City," with rental rates reaching 58,100 rubles (+55% year-on-year) and 58,600 rubles (+36%) per square meter per year, respectively.
Moscow's office rental market has been tightening, driven by a scarcity of premium office space amid strong demand. This contrasts with other global cities, where office vacancy rates remain relatively high or are increasing, influenced by shifts to remote and hybrid work models. Moscow's Class A office rents, however, are on the rise faster and are more expensive compared to cities like Dubai, London, New York, and Hong Kong at this time.
Investors seeking prime office space could find a promising opportunity in Moscow's real-estate market, given the rising finance figures and the industry's growth. With Class A office rents in Moscow remaining comparatively affordable compared to cities like Dubai, New York, London, and Hong Kong, the pace of rental increases could make investing in this sector an attractive proposition.
