According to experts from the consulting company COLLIERS, profitability rates for commercial real estate in Minsk still exceed similar indicators in most capitals of Western countries, despite their growth over the year by an average of 1.5-2.5 percentage points. Owners of properties in the Moscow agglomeration receive higher incomes.
In 2023, the profitability of commercial real estate changed slightly, within 1-2 percentage points, compared to 2020-2022 and for transactions with office real estate the rate of return averaged 9-10%, for retail real estate 11-13% and in the I&L real estate segment – 10-11%.
For large transactions, the negotiating position of sellers often starts with a yield of 8%, buyers – with 13%. On average, a yield of 10-11% can be considered equilibrium for transactions worth over $1 million.
