REAL ESTATE IN UKRAINE
As the capital of Ukraine, Kyiv dominates the Ukrainian real estate market.
At the end of 2020, total office stock in Kyiv amounted to almost 2.1 million sq m GLA. Developers are confident about the fundamentals of the office property market in Kyiv and its future potential in the light of relatively strong occupier demand, single-digit vacancy and renewed upward pressure on office rents. New office supply in 2019 doubled compared to the annual figures of 2017 and 2018. Office demand in Kyiv is driven by IT companies, industrial and manufacturing companies (particularly, FMCG).
Total modern retail stock in Kyiv reached over 2.1 million sq m GLA which includes 53% of all multi-tenant shopping centres in the six largest cities of Ukraine (Kyiv, Lviv, Odesa, Kharkiv, Dnipro and Zaporizhzhia). The retail market in Ukraine remains immature and has significant growth potential with only 5.1 million sq m (GLA) of retail stock and around 8 million inhabitants in 6 major cities. It presents attractive opportunities for expansion of both international and Ukrainian retailers.
Total stock of modern warehousing and logistics space in the Greater Kyiv area exceeded 2 million sq m GLA. In view of record low vacancy level at the end of 2019, development activity in the sector picked up. During 2020 around 85,000 sq m of new space was delivered on the warehousing and logistics property market in the Greater Kyiv area, which is the largest annual new supply in the sector since 2014. Still, it is not enough to satisfy existing occupier demand, especially for larger units. Therefore, a majority of newly delivered warehouses were fully or mostly pre-leased.
Historically, about 90% of total secondary investment volume is completed in relation to assets situated in Kyiv. Office property market in Kyiv continued to be attractive in terms of secondary investments with around 34% out of total secondary investment volumes allocated into the sector during 2020.
Ukraine is in Eastern Europe bordering seven countries: Poland, Slovakia, Hungary, Romania, Moldova, Belarus and Russia. The Black Sea and Sea of Azov are to the south and northeast. Ukraine has an area of 603,628 km2, making it the largest country entirely located within Europe.
Ukraine is at a crossroads of important trade routes. Its location is particularly good for business, as from most European capitals it takes just two hours to fly to Ukraine which is serviced by several international airports both in Kyiv and the major regional cities. The citizens of USA and EU enjoy visa-free travel. The country has a highly-educated population of 42.5 million people and huge labour market.
Ukraine large population and availability of six cities with over 800,000 inhabitants, as well as a culture of spending and strong brand awareness make it an attractive market for international retailer expansion.
Low labor costs and further integration with the EU are driving foreign investment in the manufacturing sector, particularly in the Kyiv Region and Western Ukraine (Lviv).
Ukraine’s tech and outsourcing sectors in particular are seeing robust growth.
What we offer
Opening in 1994, our company was the first established international real estate consultancy in Ukraine. We have a depth of knowledge and experience and know all the players in the dynamic Ukrainian market. This enables us to predict the way in which the real estate market is moving as well as the factors that will affect it, providing our clients with immediate solutions in challenging situations.
Our core services:
- Corporate occupier services
- Office leasing and transactions
- Retail and logistics leasing
- Capital markets
- Research and development consultancy
- Property facilities
- Project management
For 4 consecutive years, the expert jury of the EE Real Estate Awards has named Cushman & Wakefield as the best advisory and brokerage company in Ukraine.