Office Space, Kyiv
In Q3 2021, new office supply in Kyiv amounted to around 104,000 sq m GLA, which is similar to the annual figure for 2019 and by 17% exceeds the annual figure for 2020. During Q1-Q3 2021, new office supply reached 194,000 sq m with additional 32,000 sq m GLA of offices being under construction in Kyiv and scheduled for completion by the year-end.
In Q3 2021, occupier demand remained relatively robust with take-up estimated at around 57,800 sq m. Take-up in the sector reached around 143,000 sq m in Q1-Q3 2021, which was similar to the figure for Q1-Q3 2019, but doubled compared to the first 9 months of 2020. In contrast to its negative value in 2020, net absorption reached around 129,000 sq m in Q1-Q3 2021 (with ca. 76,000 sq m recorded in Q3 2021), thus indicating positive market dynamics.
Industrial Property, Kyiv
After no new delivery in Q1 2021, during Q2 2021 new supply on the logistics and warehousing property market in the Greater Kyiv area amounted to 23,205 sq m. In Q3 2021, new supply in the sector similarly amounted to around 24,200 sq m.
As of October 2021, around 83,000 sq m of warehousing space is scheduled for completion by the year-end in the Greater Kyiv area, with over 140,000 sq m being in the development pipeline for 2022.
During Q3 2021, take-up in the sector amounted to around 22,500 sq m, being 15% less compared to the figure in previous quarter, but 30% more than in Q3 2020. At the same time, Cushman & Wakefield estimates that during Q3 2021 net absorption in the warehousing and logistics property sector in the Greater Kyiv area amounted to around 36,600 sq m, which compares to net absorption in H1 2021 and accounts to 67% of annual figure in 2020.