Yakov and Partners - In the media

One of the main challenges is limited access to high-quality land. This is largely due to the difficulty in establishing effective GR communications. Additionally, when entering new markets, developers often make errors when selecting sites, underestimating local characteristics and risks, according to Anna Danchenok, a partner at Yakov and Partners

What sort of changes are shaping the real estate market today? Yakov and Partners’ experts Anna Danchenok (Partner), Pavel Shashkov (Expert at the Research & Insights Center), and Andrey Blinov (Analyst) highlight 7 key trends, from investments migration and new housing formats to digital profiles and robotization

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Reinventing the industry model to allow the developer to take on management of key work and procurement packages, as well as to develop in-house construction capabilities may help reduce project costs by 10% to 20%. This also makes deadlines and quality more predictable and reduces dependence on external players, explains Ayman El-Hashem, an Expert Partner at Yakov and Partners

The real estate market is on the cusp of an era of profound changes. Demographics, climate, technology, and development of new spaces are already transforming demand, housing formats, and urban planning principles, forcing developers and architects to rethink every single thing, from materials and infrastructure to ownership models and ways to adapt to new risks. Yakov and Partners experts have identified seven key trends that will shape development of the global industry through 2050

Membership in an industrial park or a SEZ helps businesses cut down on operating and capital costs through access to available infrastructure, including engineering networks, roads, power supply, and utilities, says Anna Danchenok. She explains that cost savings captured by businesses from locating operations in an industrial park or a SEZ vary depending on the economic sector and business model

Anna Danchenok, a partner at Yakov and Partners, predicts that housing starts will decline in 2027. She explains that with a high interest rate, project financing for developers and mortgages for buyers have become excessively expensive. The expert says that the average mortgage loan rate currently stands at 27%, which she believes is "absolutely unrealistic for consumers". Danchenok argues that reducing the key rate by 1 percentage point would not change the current situation

To create a sustainable environment, it is important to maintain a balance of land uses, with 30% to 40% allocated for housing, 30% for offices, and another 30% to 40% for social and leisure amenities. In less dense areas, the share of housing may be higher, but the mix of uses should be maintained to support business activity and a comfortable urban environment, say Ayman El-Hashem and Anna Danchenok

As estimated by Yakov and Partners, the margins of developers may fall by another 30 to 40% next year, says Anna Danchenok, Partner at Yakov and Partners. The current environment should cause developers to start considering operational transformation as soon as today. First of all, they need to change their approaches to project management and improve work flow performance to avoid serious consequences

According to Aiman El-Hashem, an Expert Partner at Yakov and Partners, the downward trend in sales is likely to continue in May. And yet, it may be viewed as a sharp drop only considering last year's high base line. In reality, the market is returning to a more realistic level of demand, no longer propped up by the incentives measures. In April, about 1.6 million square meters of housing were sold across the country, 4% more than in March, but 20% less than a year ago

In several Russian regions, major developers are selling land initially intended for construction projects. "It is quite likely that these plots were purchased with loans, and developers, facing high interest rates, are reducing their debt burden by divesting a portion of their land assets," explained Anna Danchenok, a director at Yakov and Partners