Moscow office rents booming

WHILE European office property investors suffered rent declines of between 5% and 10% last year, it's 'boom-boom time' in Moscow.

Shortage of quality space to satisfy demand from international accountants, law firms and oil companies pushed Moscow rents to $65 (£34.80) per square foot last year, up 1%, making Russia's capital pricier than Frankfurt, New York and Madrid.

Research from agents CB Richard Ellis found the Moscow market holding up better than most other major European cities last year, when London's City and West End suffered rental drops of 14% and 21% respectively.

Despite President Vladimir Putin dismissing his government yesterday, CB Richard Ellis' Michael Haddock said international business was happier being there than a year ago. 'There is a less organised crime - it is a safer place to be for ex-pats.'