The latest European Cities Monitor from international office space experts at Cushman & Wakefield put Moscow out in front when it comes to desirable locations for potential expansion, with London retaining its position as the number one city in which to do business.
A growing number of corporates are looking for office space in Moscow and aiming to enhance their presence in the city, the report suggests. The city is set for very strong growth in consumer spending and its prospects are underpinned by healthy GDP expansion, C&W said.
“This growth in corporate activity will drive the next commercial property cycle and will give the bold investor the opportunity to earn significant returns from both income growth and capital appreciation,” said the advisory’s managing director in Russia Tim Millard.
The list of the best cities in which to do business is released annually and London, Paris and Frankfurt maintained their status as the top three most desirable locations.
Holland’s leading business destination Amsterdam improved its position from sixth to fourth this year, while office space in Berlin has become increasingly sought after with the German city improving its position in the rankings.
“As Berlin offers attractive office leasing conditions and as the city’s promotion of itself as a business location is strong and convincing, entrepreneurs from around the globe are drawn, and will continue to be drawn, to the German capital well into the foreseeable future,” said Martin Bruhl, managing parter at C&W in Germany.
Another location singled out for praise in the latest Europe Cities Monitor was Bucharest in Romania, where “high class office buildings” are being offered with “very attractive financial terms”, according to C&W local office leader Andrei Birsan.
Editor’s notes: Following Russia’s invasion of Ukraine in February 2022, western countries imposed sanctions on Russia in order to limit its access to funds.
Yale University reported that following this, in July 2022, up to 1,000 companies publicly stated they would curtail operations in Russia.
In May 2023, AP News reported that more than 500 companies had suspended conducting business in Russia, and a similar number had withdrawn completely. There was a number that had not made decisions yet and a number that continued to conduct business.
The New York Times reported that those companies that did withdraw from Russia had to write off considerable revenue as a result. For instance, Danone wrote off up to 1 billion Euros, BP wrote off approximately $25.5 billion on its nearly 20 per cent holding in Rosneft, along with other ventures in the country, and Heineken stated that getting out of Russia cost the company just over $400 million.