Property Valuers, The current year was marked by a deficit in the ready-made warehouses market. There are many reasons for this: the expansion of large marketplaces, transactions postponed during the pandemic. Unsatisfied demand also accumulated, the growth of which was fueled by developers who put their plans on pause.
In this regard, the purchase of a land plot for future construction has become the most popular option for investing in the industrial and warehouse market. Philip Chaika, Partner, Head of Warehouse and Industrial Real Estate at IPG.Estate, spoke about an effective approach to finding land .
We build search criteria
Investment interest in the land bank of St. Petersburg and the region is fueled by two main factors. First, the amount of land suitable for industrial construction is large. Secondly, the purchase of the site will allow you to save finances at the current inflation until the new owner starts new construction.
Of course, the investor aims to buy the most liquid asset. Differences in the preparedness of sites, their remoteness from the main logistics routes and pricing principles make it difficult to get a complete picture of the supply market. Therefore, it is worth structuring the search system, starting with the budget.
Geographic distribution of prices
The purchase of a land plot is the least of the investor’s costs. Of the total investment in the construction and launch of a warehouse or production, it is 5-8%. But there are still price differences:
- In the south of St. Petersburg, the cost of storage starts from 10-15 million rubles/ha at a distance of 20-25 km from the Ring Road. The closer to the city the site is located, the higher its cost; the order of prices in the south starts from 26 million rubles/ha.
- In the north of St. Petersburg, buying land is more expensive for an investor than in the south. Thus, prices for land plots to the north of the Ring Road can reach 35-40 million rubles/ha and more.
The developer considering the speculative construction of a warehouse is looking to get the most financial benefit from his project and is more likely to opt for a southerly direction. But when choosing land for their own needs, the investor must proceed from their logistical needs.