Investors Transitioning from Residential to Office Properties August 29, 2024 According to statistics from the Dominanta development company, approximately half of the buyers at the QOOB business center are investors acquiring office spaces for resale or lease. Notably, around 30% of these investors previously focused on residential real estate.

In their pursuit of attractive returns, these buyers are interested in office spaces ranging from 53 to 100 square meters. Typically, the budget for such office premises is lower than that of similarly sized apartments in the same area, while the rental rates tend to be higher.

"A significant advantage of investing in commercial properties during the construction phase is the potential for higher returns compared to residential investments. Depending on when an investor enters a project, the value of an office facility can increase by an average of 30-40%. Additionally, if leased at a premium rate, office spaces generally have a much shorter payback period -averaging 10-12 years - whereas an apartment in Moscow typically requires at least double that time. Currently, we observe a consistent trend where residential investors purchase two apartments and one office," comments Anton Konobeevsky, Sales Director of Dominanta.

Sales data from BC QOOB indicates that the average age of buyers from the residential segment is between 35 and 45 years, with a balanced gender ratio of 50/50. Purchase decisions are generally made within 2-3 weeks from the initial contact to contract signing.

"When selecting an investment property, these investors evaluate various factors, including the overall location, lot price, availability of installment plans, project timelines, and the legal framework governing the transaction. BC QOOB is among the few office buildings where sales are conducted under the CDA (Construction Development Agreement), which is regarded as highly reliable. This scheme is particularly clear and trustworthy for buyers from the residential segment," states Anton Konobeevsky.

Over the ten months of sales for BC QOOB, 95% of buyers opted for interest-free installments until the completion of construction, which is scheduled for the fourth quarter of 2025.

BC QOOB is a Class "A" business center situated at the intersection of Kutuzovsky Avenue and Rublevskoye Highway, specifically on Alexey Sviridov Street. The complex will comprise two buildings totaling 21,450 square meters. One of these buildings, covering 10,800 square meters, is designed for acquisition by a single investor and is suitable for establishing the headquarters of a large corporation. The second building is available in separate lots ranging from 53 square meters to an entire floor.

The offices, located between the 2nd and 9th floors, feature flexible layouts that allow for the combination of units. Floor-to-ceiling windows and 3.6-meter ceilings provide ample natural light throughout the spaces. Additionally, the developer plans to create functional areas for work and relaxation on the roof. The ground floor will host commercial retail space, including a café.