Page 83 - bne IntelliNews Russia Country report May 2017

9.1.2 Automotive sector news
Sales of cars and light commercial vehicles in Russia increased by 6.9% year-on-year in April , following a 9.4% y/y gain seen in March, according to a May 11 press release of the Association of European Businesses (AEB) that oversees the industry. I n January-April overall 0.452mn vehicles were sold, up by 2.6% y/y, expanding on the 1% rise seen in the first quarter that made the first quarter of growth on Russian car market in four year s. AEB previously said Russia’s car market has the potential to end a four-year period of decline and to return to moderate growth in 2017 with 1.48mn vehicles sold, or 4% y/y above the 2016 result. In 2016, sales of new cars in Russia declined by 11% to 1.42mn units. International business consultants PwC predicted that Russia’s car sales will increase in 2017 for the first time in several years to 7% year-on-year. Same as previous months, the top ten selling models in Russia were locally produced in April. AvtoVAZ's Lada remained the top selling brand with a 20% market share, increasing the sales by 7% y/y in April.
9.1.4 Construction & Real estate sector news
Moscow retail premises vacated during the recession are gradually filling up, bringing the vacancy rate to the levels last seen in the beginning of 2014, according to JLL. The vacancy rate in main Moscow high street corridors reached 8.4% in Q1 2017, down by 1.2 ppt from Q4 2016 and by 4.1 ppt from Q1 2016. This has extended the decline of the vacancy rate to four quarters. “Improving consumer sentiment is positively reflected in the retail turnover dynamics, which, in turn, affects the occupancy of main Moscow retail streets,” Natalia Ozernaya, Deputy Head of Street Retail, JLL, Russia & CIS, comments. “A slight correction over the summer is possible on the central streets currently under reconstruction. But overall, we expect the vacancy to continue declining on the back of economic recovery and completions of the renovation of Garden Ring, Tverskaya and Petrovka streets.”
The vacancy rate in main Moscow retail corridors approached a pre-crisis level of 8% in May , according to JLL. The vacancy rate in main Moscow high street corridors reached 8.4% in Q1 2017, down by 1.2 ppt from Q4 2016 and by 4.1 ppt from Q1 2016. This has extended the decline of the vacancy rate to four quarters. Premises vacated during the recession are gradually filling up, bringing the vacancy rate to the levels last seen in the beginning of 2014.
83 RUSSIA Country Report May 2017 www.intellinews.com