As part of the Caucasus Investment Forum, a session of the Russian Ministry of Industry and Trade was held on the theme: “Industry as a Driver of Development in the North Caucasus Federal District and the Southern Federal District: Myth or Reality?”.
Special attention was paid to the issue of industrial infrastructure development in the North and South Federal Districts, namely the number of existing and newly created industrial parks. According to the Association's data, there are 16 industrial parks in the North Federal District (11 of them are operating) with a total area of almost 2400 hectares (60% of the territory is occupied by residents) and more than 4500 workplaces have been created. In the Southern Federal District there are 22 industrial parks (15 of which are operating) with a total area of almost 2400 hectares (50% of the territory is occupied by residents) and more than 2850 jobs have been created. The number of industrial parks created in the Southern Federal District and the North Caucasus Federal District has been growing rapidly in recent years.
According to the Association of Industrial Parks of Russia, in 2022-2023 the structure of demand for industrial infrastructure has changed significantly in favor of demand for both purchase and lease of ready-made industrial premises.
For the first time in 13 years of the Association's observations, demand outstrips supply. According to the results of the full year 2023, the demand for ready-made industrial premises has overcome the 90% mark (while during the previous 10 years this indicator was balanced at the level of 50%). And this trend will continue.
In the current environment of high key rates, bank financing is becoming uneconomical for industrial infrastructure developers. Management companies and developers of industrial parks and SEZs continue to build facilities only in the build-to-suite mode (by order of customers), actually at the expense of residents. At the same time, due to the lack of access to preferential lending, they are actually deprived of the opportunity to build ready-made buildings to meet future market demand.
If the current trends continue, the share of vacant premises in industrial parks in Russia will be close to zero by the end of 2024. Industrial parks will be unable to fulfill their main function - to provide investors with ready industrial infrastructure, including built and commissioned production buildings.
In this regard, the Association of Industrial Parks of Russia proposed to launch a program of preferential lending to management companies of industrial parks for the construction of industrial infrastructure facilities of industrial parks, including production buildings to replace residents' production facilities.
Special attention was paid to the issue of industrial infrastructure development in the North and South Federal Districts, namely the number of existing and newly created industrial parks. According to the Association's data, there are 16 industrial parks in the North Federal District (11 of them are operating) with a total area of almost 2400 hectares (60% of the territory is occupied by residents) and more than 4500 workplaces have been created. In the Southern Federal District there are 22 industrial parks (15 of which are operating) with a total area of almost 2400 hectares (50% of the territory is occupied by residents) and more than 2850 jobs have been created. The number of industrial parks created in the Southern Federal District and the North Caucasus Federal District has been growing rapidly in recent years.
According to the Association of Industrial Parks of Russia, in 2022-2023 the structure of demand for industrial infrastructure has changed significantly in favor of demand for both purchase and lease of ready-made industrial premises.
For the first time in 13 years of the Association's observations, demand outstrips supply. According to the results of the full year 2023, the demand for ready-made industrial premises has overcome the 90% mark (while during the previous 10 years this indicator was balanced at the level of 50%). And this trend will continue.
In the current environment of high key rates, bank financing is becoming uneconomical for industrial infrastructure developers. Management companies and developers of industrial parks and SEZs continue to build facilities only in the build-to-suite mode (by order of customers), actually at the expense of residents. At the same time, due to the lack of access to preferential lending, they are actually deprived of the opportunity to build ready-made buildings to meet future market demand.
If the current trends continue, the share of vacant premises in industrial parks in Russia will be close to zero by the end of 2024. Industrial parks will be unable to fulfill their main function - to provide investors with ready industrial infrastructure, including built and commissioned production buildings.
In this regard, the Association of Industrial Parks of Russia proposed to launch a program of preferential lending to management companies of industrial parks for the construction of industrial infrastructure facilities of industrial parks, including production buildings to replace residents' production facilities.