CONDITIONS FOR THE DEVELOPMENT OF COMMERCIAL REAL ESTATE IN THE RUSSIAN FEDERATION WITHIN A SOVEREIGN INDUSTRY ECONOMY

ABSTRACT

The role of commercial real estate development in the system of the sovereign industry economy of the Russian Federation is considered. Through various types of commercial real estate, favorable conditions for business development are ensured, leading to increased investments in this sector of the country’s economy, the creation of new jobs, and growth in tax revenues, stimulating the nation’s economic growth.

Keywords: development, economy, infrastructure, investments, economic growth.

Commercial real estate development in Russia is becoming a key element of sustainable economic growth, especially under sanction restrictions and the transition to a sovereign development model. This industry not only shapes the modern appearance of cities but also stimulates business activity and creates a multiplier effect for related sectors, such as construction materials, logistics, IT technologies, and services. Currently, the development of commercial real estate is transforming under the influence of import substitution, digitalization, and the strengthening role of the state as a regulator and investor.

Sanction restrictions have highlighted the urgency of creating a self-sufficient construction industry in the Russian Federation. The departure of foreign suppliers of construction materials, technologies, and services has stimulated the growth of domestic production. For example, Russian companies have increased the production of glass, metal structures, and engineering equipment, reducing import dependence by 30–40% (according to the Ministry of Industry and Trade), which, in turn, creates a foundation for implementing large-scale commercial projects—from logistics complexes to innovative business centers.

The state, recognizing the role of development as a driver of GDP growth, is implementing systemic measures to support the construction business, including: providing tax incentives through VAT reductions for industrial real estate projects, tax holidays for residents of Special Economic Zones (SEZs), expanding SEZ (Special Economic Zone) and TAD (Territories of Advanced Development) networks, where investors receive preferential terms for their activities in the form of reduced tax rates and special land-use conditions. The state is also developing preferential lending programs aimed at subsidizing credit rates for developers through development institutions such as Дом.рф and ВЭБ.рф.

Commercial real estate development in the Russian Federation attracts up to 25% of all direct investments in construction (Rosstat data for 2023). Key directions of commercial real estate development include:

• Logistics hubs: The growth of e-commerce has driven increased demand for Class A warehouses in the regions;
• Industrial parks: Creation of production clusters with full infrastructure;
• Office spaces: The shift to hybrid work formats requires modernization of existing facilities and construction of new ones, aligned with modern industry trends. Additionally, investments in commercial real estate lead to job creation, development of regional and national infrastructure, increased tax revenues to the national budget, which, in turn, drives the country’s economic growth.

Investors interested in commercial projects often allocate funds not only to building construction but also to developing new technologies, management methods, and business models. This contributes to increased productivity and competitiveness of regional enterprises, as well as the creation of a favorable environment for startups and small businesses. Furthermore, successful commercial projects can attract attention to a region from other companies and investors, fostering a positive image and creating new opportunities for business development. For example, the creation of a new shopping center or business cluster may lead to additional partnership proposals from other companies, expanding business networks and attracting new investments.

Tasks required for the development of commercial real estate:

• Development and implementation of new plans and strategies for commercial real estate construction aimed at meeting the needs and requirements of the target audience, as well as attracting new clients and investors;
• Analysis of the competitive environment in this sphere—to identify competitors’ strengths and weaknesses, analyze their strategies and tactics, and determine one’s own competitive advantages;
• Assessment of potential risks associated with commercial real estate development and the development of strategies and measures to manage them to minimize the negative impact of potential issues on development projects;
• Identification of the advantages of this economic sphere to determine key factors contributing to its development, as well as to utilize these advantages in marketing strategies and project planning;
• Development of a strategy to attract investments in commercial real estate, conducting marketing research to engage potential investors.

To ensure sustainable growth, a key strategy is advancing import substitution through innovation, including the creation of R&D centers that will develop domestic equivalents of smart technologies and eco-friendly materials, such as solutions for carbon-neutral construction. Simultaneously, it is important to shift focus from Moscow and St. Petersburg to regions, concentrating on million-plus cities—Kazan, Yekaterinburg, Novosibirsk—where land costs are lower and the potential for project scaling is higher. This will reduce territorial development imbalances and leverage undervalued markets. To minimize financial risks, it is necessary to implement project stress testing that accounts for rate volatility, demand fluctuations, and regulatory changes, thereby enhancing business resilience to crises.

An additional growth driver will be increasing market transparency through the development of crowdfunding platforms and REIT funds, which will engage the public in investments and ensure capital inflow into the sector. Implementing these measures requires a systemic approach: from stimulating scientific research to building investor trust through data transparency. The success of the strategy will depend on the synergy between technological development, regional expansion, risk management, and financial inclusion, which together will create a foundation for long-term competitiveness.

In conclusion, it can be stated that success depends on the synergy of state support, private investments, and technological modernization. The implementation of projects in logistics, industry, and the office sector will not only increase GDP but also strengthen regional positions, creating a foundation for long-term growth amid global instability. Over the next 5–7 years, the industry could become a hub for a new urbanization model combining economic efficiency and social orientation.

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