REGENS MAGAZINE special edition - december 2020
by Regens International Copyright 2020
Our story is in the unbeaten paths we have travelled...
...in the stormy horizons we have challenged.
Credits: for the photos and/or graphic design contributions contained in this issue special thanks go to Seozzy (Alessandro Davia) and to Unsplash website.
Introductory message
Alessandro Alessio Regens International, Founder
Dear readers, The year approaching to an end has not been simple for anyone. The pandemic obliged us all to reassess our priorities, to dramatically change our lifestyle, but at the same time gave us the opportunity to apprecciate even more deeply our relationships and reconsider the importance of such concepts as «space» and «time». In fact these are the very pillars upon which our everiday lives are based, what defines both our «domestic hearth» - that «nest» each and every one of us loves to return to at the end of the day - and the working space which we need to fulfill our professional ambitions In the following pages we are delighted to present properties worth of satisfying the most diversified needs: cosy homes to pamper your beloved ones as well as other spaces for your work and business. We really hope you’ll enjoy the reading! Allow me to send the warmest greetings for the festive season to you and your families with my best wishes for a very merry Christmas and a happy New Year! Alessandro Alessio a.alessio@regens-international.com www.regens-international.com
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Table of contents
Featured topics: Highlighted listings - Homes by the sea
5 — real estate in Russia
Residential lettings in Moscow Commercial properties in Moscow Properties for sale in the Russian regions Industrial properties (storage & manufacturing) Properties in Saint Petersburg Market insight: «Russia’s property market forecast 2021»
— International real estate
Farmhouses, agritourism and B&B Hotels for sale internationally Restaurant businesses for sale Highlighted listing - «The Residences in the Venetian Lagoon» Highlighted listing - «The abandoned Hamlet overlooking the Valleys»
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Highlighted listings - Homes by the sea
Istria, Croatia House with garden for sale first row to the sea near Umag. Asking price: 770,000 EUR negotiable
Trieste, Strada Costiera House with pool and direct access to the beach (shared with the neighbours) Price on request
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Residential lettings in Moscow
Moscow, metro Taganskaya
Fully furnished 2-room apartment. Rent: 62,000 RUB /month
Moscow, metro Baumanskaya Nice 3-room apartment for rent. Price: 70,000 RUB /month
Moscow, metro Chistye Prudy
Elegant 3-room apartment in historic mansion. Rent: 150,000 RUB /month
Moscow, metro Park Kul’tury
Renovated 2-room apartment for rent. Price: 120,000 RUB /month >>>
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Commercial properties in Moscow
Moscow, Tverskaya
High-street retail premises (254 m2) for rent or sale
Moscow, luxury district
Retail space (110 m2) for high-end boutique Price on application
Moscow, Bol’shaya Nikitskaya
Office/showroom premises (140 m2) in early 20thcentury building. Rent: 225,000 RUB/month
Moscow, Mar’ina Roshcha
2-storey retail space for flagship store or showroom Price on request.
Moscow, near Moscow-City
Showroom premises (171 m2) for rent. Rent: 570,000 RUB/month <<<
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Properties for sale in the Russian regions
Volgograd
Krasnodar
Retail space (ca.1000 m2) for sale for flagship store or showroom.
Retail building for flagship store, showroom or department store
Kazan
Smolensk
Semi-detached building in pedestrian street in the very heart of the city.
Former pasta processing plant for sale or rent in bulk.
Kazan
3-star hotel for sale in close proximity to the railway station.
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Industrial properties (storage & manufacturing)
Moscow region 5 km from MKAD to the South Class «A» warehouses for rent. Available spaces: 4057 - 9200 m2
Moscow region 2 km from MKAD to the South-east
Kaluzhskoe shosse ca.15 km from MKAD to the South
Warehouse (4800 m2) for rent.
Class «A» warehouse for rent (5950 m2)
Mozhaiskoe shosse, right on MKAD (West of Moscow)
Ground-floor space (700 m2) for storage, car service or other purposes. 6-metre ceilings. Rent: 12,000 RUB/m2/year
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Properties in Saint Petersburg
Saint Petersburg, Admiralteysky district Retail space (208 m2) for sale in historic building after renovation
Saint Petersburg, ÂŤGolden TriangleÂť Luxury residences for sale in beautifully renovated historic mansion
Saint Petersburg, Admiralteysky district Street-retail premises (200 m2) for sale in early 20th-century building
Saint Petersburg, Bolshaya Morskaya 3-room apartment calling for refurbishment Asking price: 210,000 EUR
Saint Petersburg, canel Griboyedov Spacious apartment (185 m2) for sale Price: 450,000 EUR
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Saint Petersburg, canal Griboyedov Nice 2-room apartment for rent Rent: 60,000 RUB/month
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Saint Petersburg, Nevsky Prospekt Luxury office spaces for rent in beautifully renovated buildings Information on request.
Saint Petersburg, Nevsky Prospekt
Spaces for rent in historic shopping gallery in the very heart of the city. Information on request.
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Market insight Russia’s property market forecast 2021 It is always very difficult to make predictions of any kind in a country like the Russian Federation, but on the basis of our daily on-the-ground experience we can share the following considerations. In the course of 2021 it seems likely that a certain gap will remain (and perhaps even further increase) between the large number of offers on the market and a more timid and limited demand, which more plainly will show in certain segments. Residential: The increasing affordability of mortgage loans should help keep demand lively in the segment of new construction homes, especially when the talk is about cheap apartments in the suburbs of large cities, which some buyers usually consider also for investment purposes. Despite the crisis, average prices on the resale market in Moscow’s traditionally «sought-after» districts (e.g. most of the city centre and the South-west) have risen over the last two years, although the average exposure period for finding buyers has definitely increased there as well. In this case, prices could remain more or less at the same level due to the fact that in the centre new developments mainly relate to conversion projects of historic buildings into luxury condominiums with prices that are accessible only to a very limited number of «lucky few».
In St. Petersburg, on the other hand, average prices for flats in good condition in the central districts remain comparatively very appealing and keep attracting interest mainly among domestic buyers from other cities and investors from abroad. Suffice it to say that even today in the Tsentral’ny and Admiralteysky districts it is still possible to find apartments at prices ranging between 130,000 and 170,000 RUB/m2 (equal to about 1500-1900 EUR/m2 as per the current exchange rate) in historic blocks of flats where, however, the condition of the common areas often leaves much to be desired. As far as residential rentals are concerned, the following key-factors have been observed over the last few years: (a) a sharp decline in the number of foreigners moving to Russia for professional tasks in management roles; (b) many foreigners, by virtue of the worsening economic outlook in the country have left the country (and, as a consequence, made vacant a large number of high-end properties); (c) the constantly decreasing purchasing power of the population and households; (d) a widespread perception of the risk of job loss and the decline in profits from business activities. All these elements have contributed to a strong reduction in the ‘popularity’ of expensive or premium rental solutions, which were previously largely the preserve of expatriates and foreign executives. Demand for these types of options has dropped significantly and - at least in the first half of 2021 - we would not expect this trend to change. This may lead more and more landlords to review their price expectations downwards in order to try to rent their flats within a reasonable timeframe. In addition to that, some landlords who have resigned themselves to prolonged tenancy vacancy periods may decide to put their flats up for sale, especially once they realize that rental yields have fallen, in the hope for an immediate monetization. Offices: In recent years, this segment has perhaps suffered the most from the country’s economic downturn and financial crisis. As if that were not enough, in recent months, it has been the one that has felt the impact of the pandemic’s effects most strongly. In fact, while in the previous five years many companies went bankrupt, abandoned the Russian market or at least tried to optimise operating costs by moving to smaller spaces and cutting down on staff, as of this year the impossibility of making full use of rented spaces has made local companies discover «smart working» and convinced many of them that this working system could be maintained even after the restrictive measures linked to COVID have been lifted. If we add to this the fact that in many sectors the projections for the coming months do not give rise to any particular optimism, it is to be expected that in this segment demand will continue to be exponentially lower than supply, many spaces will remain vacant and the administrations of some office complexes may opt for a conversion of large vacant areas (for which it might be particularly difficult finding tenants in the current situation) into co-working spaces, as is already happening in part.
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Retail and restaurant premises: The closures imposed during the spring lockdown not only led to a serious crisis in the retail sector due to lost revenues and the subsequent impossibility to meet their contractual obligations (which affected deeply also the shopping center industry), but also induced a changed perception of the shopping experience among many regular users. Statistical data published by a number of specialized companies show that during the spring 2020 lockdown the average number of visitors to Moscow’s shopping centers (where only supermarkets, pharmacies, children’s stores and telecom stores could be visited at that time) plummeted by 70 per cent, but even in the weeks between October and the end of the year - despite the absence of formal restrictions- therewasa30 percentdropin Moscowandaround 25 percentdropin StPetersburgcompared tothesameperiod thepreviousyear. At the same time, online sales increased by 20% during the year and online grocery sales also rose significantly. It is no coincidence that even in the most prestigious shopping streets and «luxury districts» the number of vacancies has clearly increased (up to the 15%) compared to the past. This has led to a drop in rents, which - while in the most sought-after areas amounts to an average of 10-15% - has reached peaks of up to 30% in less popular locations. A similar trend can be observed in shopping centers, where the percentage of vacant space averages between 10-15%. Uncertain times are also being experienced by restaurant operators everywhere. Many establishments have closed their doors permanently in recent months, although most have continued to operate even during the period of introduction of the more restrictive measures thanks to home deliveries and take-away sales. The average expectation for a drop in turnover in the current year for operators in the sector is 20-25%. Under these assumptions, it is plausible that at least in the first half of 2021 the situation will remain more or less unchanged and landlords will have to resign themselves to offering retailers and restaurateurs cheaper rents than they were used to in better times. Industrial properties (warehouses, storage- and manufacturing spaces): The segment of light industrial, storageand manufacturing spaces in and around major cities is the one that probably has been least affected by the upheavals related to the pandemic. In the Moscow region alone, there has been a total demand for 1.5 million square meters of new properties of this type, which can also be explained by the increasing turnover of e-commerce operators who therefore need more and more space to store their goods. It is no coincidence that the record-breaking deal of the year saw Russian online retail giant «Ozon» sign a lease for some 200,000 m2 of warehousing space on a build-to-suit basis. This is what many operators in the local market value most: the turnkey construction of warehouses based on their own individual technical requirements and specifications. This keeps the vacancy rate rather low (approx. 5%) in «A» or «B+» category complexes built in recent years and at the same time tends to prevent downward price fluctuations. It should be noted that the demand for modern, high-quality warehouses is also increasing in the regions, driven here as well in particular by e-commerce operators. All in all, will remain
it is to be expected that prices for industrial (manufacturing and warehousing) spaces virtually unchanged in the coming months, and in some cases may even rise slightly.
Alessandro Alessio
a.alessio@regens-international.com
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Farmhouses, agritourism and B&B
Umbria, Italy
Large estate with pool for sale near Assisi. Asking price: 998,000 EUR negotiable
Piedmont, Italy
Renovated farmhouse in the Langhe region. Price: 600,000 EUR
Northern Italy, near Lake Maggiore 18th-century mansion for sale. Price on application.
Italy, near Lake Como
Villa calling for thorough renovation within easy driving distance to the lake. Price: 850,000 EUR negotiable
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Hotels for sale internationally
Venice (province)
30-room historic hotel for sale at 20 minutesâ&#x20AC;&#x2122; drive from Venice.
Bibione, near Venice
Calabria
4-star hotel for sale in close proximity to the beach.
Hotel complex for sale far below market value.
Dolomites, near Cortina dâ&#x20AC;&#x2122;Ampezzo
Marienbad, Czech Republic
Family-run hotel for sale within easy driving distance to Cortina
Boutique-hotel for sale in nice historic mansion.
Sunny Beach, Bulgaria
3-star hotel for sale in renowned resort on the Black Sea.
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Restaurant businesses for sale
Marbella, Puerto Banus
Italian restaurant for sale in popular international tourist destination.
Mallorca
Well-established high-end restaurant with loyal customer base.
Nice, French Riviera
Restaurant business for sale in Nice, Le Carrè dâ&#x20AC;&#x2122;Or .
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Florence, historic center
Restaurant business for sale just steps away from Piazza della Signoria and Palazzo Vecchio.
French Riviera
Seaside restaurant business in internationally-acclaimed tourist resort. >>> Regens Magazine 04/2020 www.regens-international.com
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Highlighted listing
THE RESIDENCES IN THE VENETIAN LAGOON Exclusive apartments in
beautifully renovated historic complex Additional information > here
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Highlighted listing
THE HAMLET OVERLOOKING THE VALLEYS
Abandoned hamlet for sale in Piedmont within easy driving distance to Milan, the Ligurian coast and the French Riviera. Additional information > on application
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