Page 113 - RusRPTNov20

note that last week, Rosaviatsia gave permissions to Russian airlines to operate international flights, including closed ones. These permissions are mostly ineffective now, as they can only be used when these flights are resumed by the government
9.1.4 ​Construction & Real estate sector news
In 9mo20, residential completions declined 2% y/y to 47.8mn sqm. Industrial volumes corrected 4% y/y to 22.7mn sqm and accounted for 47% of the total. ​The results were pressured during the lockdown restrictions, as 44 regions in Russia saw construction limitations while sites in Moscow (completions down 16% y/y for 9m20) were closed for four weeks. The resumption in construction activities and pickup in sales as a result of the subsidised mortgage programme resulted in construction activities accelerating in September, with completions adding 18% y/y in Russia to 7.8mn sqm. Previously, the government estimated that completions would correct 5-6% y/y to 78mn sqm in 2020, while recent periods point to certain upside risks, with the seasonally strong 4Q20 still ahead.
Office space sales and lease deals in Moscow in 3Q20 dropped 2.5-fold year on year ​to 0.15mn square meters, ​Vedomosti d​ aily reported on October 8 citing the data by JLL. This made the lowest indicator on the office real estate market since 2006.
Other property consultants and analysts confirmed to ​Vedomosti t​ hat post-coronavirus lockdown 3Q20 was the worst quarter for business centres in the past years, in line with the global trend.
However, some analysts note that the activity on the market remains high, but many potential renters are waiting out to see the further development of coronavirus pandemic to finalise any office deals.
At the same time the area of co-working spaces deal doubled in 3Q20, but remained marginal at 18,000 square meters. The largest co-working projects in the reporting period in Moscow were Manufaqtury, Poklonka Place, and Space.
9.1.5​ Retail sector news
113 ​RUSSIA Country Report​ November 2020 www.intellinews.com
Russian beer production gained 4% YoY in 9m20 to 618mn decalitres,
while in September, production was up 2.6% YoY.These are decent numbers, given the tight regulations and 5% inflation in excise this year. The Russian beer market is consolidated, with the top three players holding some 70% and Anadolu Efes occupying the leading position (28%). Russia accounted for 65% of Anadolu’s beer volumes in 1H20, and we anticipate its 2020 performance