MIEL: Price of square meter of trade area reaches $7,000 in Sochi
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MIEL- Commercial Real Estate has entered in an agreement with Europa group of companies to construct a shopping center in Sochi. The cost of the object with total area of 15,000 sq. m. will be 375 million rubles ($15 millions), REGNUM is informed at the press press-service of the company on June 10.
"Presently, the retail sector of real estate market in Sochi has only started developing. The basic format of trade is street-retail, and the amount of shopping malls does not meet the demand for high-quality shopping areas. Among the existing shopping centers only the Central Market, “The shopping streets” complex and the Central Department Store can be mentioned, informed the MIEL-Commercial real estate.
The total amount of offers of sales area with mid-level quality estimates about 100,000 sq. m., which as the company believes is extremely small not only for the 400,000 residents of Sochi but also for 4 million tourists visiting the resort annually.
The rent rates for retail areas, according to MIEL, vary from $500 to $2000 per sq. m. per year in the central district of Sochi, while one square meter purchased now costs up to $7,000 with a tendency for growth.
The shopping center project being realized by the MIEL-Commercial Real Estate is located on the cross-road of Sochi major highways, not far away from a branch railway line in Gagarin Street, 72/1. The complex does not belong to the Olympic Games objects. Construction of the shopping center has not completed yet. A four-level building is constructed on the territory of 0.9 ha with total area of 14,263 sq. m. The built-up area is 0.4 ha.