Russia economy impact sectors part 5
February 28, 2008 – 3:35 amRegional Furniture Market Structure
The rate of expansion and the geographical distribution of furniture sales in Russia are closely linked to the financial resources of the population, the magnitude of home building, the development of educational facilities, the health system and tourism. This is underline by the regional structure of the furniture market.
Centre Continues to Lead the Way
The major sales are achieved in the Central Federal District, with more than 50.1 per cent. More than 40.4 per cent of the total furniture sale in the Russian Federation are realized in Moscow region (Moscow and surrounding area), of which 30 per cent in Moscow alone.
Siberia has Woken Up
Sales in the Ural region signal annual growth and are currently running at 12.4 per cent of the Russian furniture market. Furniture sales in the Tjumen region have also increased strongly in recent years and are currently running at 5 per cent of the total Russian volume. The level in furniture sales in all cities of Western and Eastern Siberia are growing steadily, a situation that also applies to the Far East where the increase already exceeds 12.3 per cent.
Southern Russia Joins In
The share of furniture sales in the Privolshski province is more than 12 per cent. Sales in the Jushny region are also rising steadily and are currently running at 7.6 per cent. The largest sales are achieved in the Krasnodar and Rostov areas.
Annual Per Capita Expenditure on Furniture
Whereas the average annual expenditure on furniture per capita in Russia is approximately US$ 20, the official figures in the central federal regions are US$ 16.7, the Urals US$ 23.5 and in Privolshski US$ 5.7. Unofficial statistics indicate the following: Moscow (US$ 88,8), Tjumen region (US$ 64.4), Moscow area (US$ 53.5), Tscheljabinsk area (US$ 34.4) and the Kemerov are (US$ 28.4).
Business Real EstateOffice space construction booming
The construction of office space also continues to develop at a rapid pace, rising by 30 per cent in 2004 compared with 2003. Projects continue to become more individual as far as quality is concerned, and well equipped. Still, demand for high-grade office space is currently not met. Empty office space, at 6.1 per cent in Moscow, is extremely low compared with the European situation. Construction of office space is shifting more and more to the city boundaries. Half of top-grade office space is now to be found beyond the so-called “garden ring” (Sadovoje kolzo). Rental agreements are being concluded more and more during the actual building phase, allowing lessees to have a greater say in furnishing (25 per cent of all contracts concluded in 2004).
Construction of shopping centres expanding into the regions
With the exception of Moscow and St Petersburg, large shopping centres were only built in the cities of Kasan, Jekaterinburg and Samara in 2003. In 2004, however, Nishni Novgorod, Tescheljabinsk, Toliatti, Ufa, Novosibirsk and Perm were added to the list. Investments in these cities are primarily linked to the exceptional increases in wages. In future, smaller towns with population of up to 400.000 will also be included in this construction work.
If you’re in a financial emergency, payday loans can assist you in getting back in control of your life by giving you money based on your weekly paycheck.
