The Government of Leningrad region is ready to support projects in the sphere of commercial real estate, first of all in rapidly growing areas of new residential housing at the borders with Saint Petersburg.
First Deputy Chairman of the Committee for Economic Development and Investment Activity of Leningrad Region Anton Finogenov told about this during a conference MarketMedia “Transformation of Retail and Commercial Real Estate in Competition for a Consumer”.
Priority projects in the sphere of commercial real estate are public and business property, new formats of shopping malls and entertainment facilities and recreational real estate, as well as projects of medical and educational clusters.
One of the reasons for development of commercial real estate is emergence of new cities in agglomeration territories of Leningrad region with the population amounting to more than 1 million people and the population growth is up to 70,000 annually.
“We understand that this sphere is quite specific and requires establishment of significant measures of support. We are ready to test mechanisms of tax increment financing and discuss with business use of more traditional measures – tax benefits, subsidies, administrative and organizational support,” noted Anton Finogenov.
The participants of the conference noted that a general trend at the market is new formats of commercial real estate which combine various formats and the share of retail areas is reducing. That’s why another possible way of development of this sphere in Leningrad region is, according to Anton Finogenov, integration of social facilities, sport or cultural ones, in commercial projects. Another promising area is multifunctional development of territories within possible construction of transport hubs for example in Kudrovo, Sertolovo and Gatchina.
Committee for Economic Development and Investment Activity of Leningrad Region invites business to participate in discussion concerning measures of support. You can send your suggestions to Economic Development Agency of Leningrad Region or Investments Department of the Committee.