Ukrainian real estate – despite the local crisis, an increase in supply and demand is expected
The commercial real estate market in 2018 approached the pre-crisis figures for 2013. The level of free places in shopping centers is close to three percent. This is, to a certain extent, an alarm signal. If a sufficient amount of retail space is not commissioned, the rental rate for companies will increase significantly.
A similar situation arose with office real estate. In 2017, 15% of vacancies remained vacant. In 2018 – only 6%, while the most uncomfortable. This situation stimulates developers to build new areas and to attract investment for projects.
Commercial real estate in Ukraine in 2018 attracted about $ 300 million of investment. Analysts predict that this amount in 2019 will grow, but not much: the country is in the list of states (including Turkey, Egypt, and some others) with local crises every 5 years. The year 2019 is associated with presidential and parliamentary elections, which automatically leads to the relocation of people and a number of companies (including the IT sector) to other countries.
In Ukraine, for every 1,000 people, there are 700 square meters of office space. For comparison: in Romania, this figure is equal to 1,540 m2, in Poland – 3,120 m2, and in Germany – 5,228 square meters.
Also, the projected growth in offers in the office real estate market is associated with increased demand from Ukrainian high-tech firms and foreign companies. It is expected that in 2019, 50,000 square meters of office space will be put into operation, which will not be able to closely meet the existing demand.
Ukrainian real estate – the emergence of large tenants stimulates the commercial real estate market
In addition to local crises every 5 years, Ukraine demonstrates a noticeable increase in rental rates for commercial real estate once every 2-3 years. At present, they are among the cheapest in Europe and can only compete with their counterparts in Georgia. It is because of this that international corporations choose Kyiv as the headquarters of the region “Eastern Europe and the Baltic States”. Therefore, experts recommend investing in development projects in the summer of 2019, when rent is still relatively low.
In 2018, there was a noticeable recovery in the commercial real estate market. This is mainly due to the long-awaited visit of famous Western companies such as H & M, Zara Home, and many others.
The total area of the shopping center and shopping mall, which will appear in 2019-2021, will be 633,000 m2. In 2018, more than 85,000 sq.m. was commissioned. new premises.