Mikhail Khorkov discusses the future of office real estate market in Ekaterinburg
Office Real Estate Market in Yekaterinburg Stabilizes with Growing Supply
The office real estate market in Yekaterinburg is experiencing a shift towards stability, with potential expansion of supply, according to industry experts. This trend reflects a general trend of market stability and moderate growth in regional real estate sectors.
Despite a limited office market reserve, the market is expected to see price stabilization in 2025. This is indicated by stagnation trends in the broader Russian real estate markets, where secondary housing prices, including those in Yekaterinburg, have remained almost unchanged in mid-2025. This stability is likely due to increased demand activity driven by interest rate cuts.
Major real estate developers such as Etalon Group and LSR Group have reported strong sales and supply growth in premium and commercial real estate segments across Russia’s regional markets in the first half of 2025. This suggests an expansion of available real estate stock that could extend to office properties in cities like Yekaterinburg.
However, unlike the residential sector, there has not been a significant expansion in supply and a qualitatively wide range in the office market as of 2025. This shortage is due, in part, to the fact that over the past decade, developers have mainly focused on building residential properties.
The growing attractiveness of regional Russian markets and ongoing infrastructure development support the outlook for office market expansion or renewal. Trends in commercial real estate sectors such as data centers, which are part of the broader office and business infrastructure segment, also contribute to this optimistic outlook.
Property owners have been gradually increasing rents since 2023, which has become a problem for many businesses. However, prices on the housing market have not changed significantly in recent months, according to DK.RU. The company does not expect significant price changes in the coming months for the housing market either. Sales volumes on the housing market have recovered from the weak start of the year but have not yet returned to last fall's levels.
The market for business centers in Yekaterinburg is underfunded. Companies in Yekaterinburg have insufficient choice in the range when they want to rent or buy space for work. Mikhail Khorkov mentioned the existence of "sleeping projects" on the office real estate market.
Before these projects enter the market, the financing conditions for developer projects need to improve. In 2023-2024, there was a price revaluation in the segment of office space sales in Yekaterinburg, which was also contributed by the expanded demand from investors. It was reported by DK.RU that they may update the peak in supply for the housing market this year.
In summary, the market for office real estate in Yekaterinburg in 2025 aligns with stable prices and growing supply, driven by broader regional real estate trends and economic factors such as demand revival and cautious price dynamics observed in Russian cities outside Moscow and St. Petersburg.
- Investors may find attractive opportunities in the growing supply of office real estate in Yekaterinburg, considering the stabilization trend in the market and the expanding demand revival in Russia's regional markets.
- With the increasing investment in commercial real estate segments like data centers, the office real estate sector in Yekaterinburg is poised for expansion or renewal, reflecting a broader trend of market growth and stability in the Russian finance industry.
