Developers returned to active construction of suspended commercial real estate projects in Kyiv in 2018, Deputy Head of the Strategic Consulting Department of UTG Kostiantyn Oliynyk has said. “A development boom occurred on the commercial real estate market in late 2017 through early 2018. Numerous projects have resumed development activities and are planning to open, new concepts will be developed for some facilities. For example, Podol Mall, which was initially designed as a shopping mall, will be a three-story shopping mall with three floors of office premises,” Oliynyk said during a press conference on the results of the Ukrainian real estate market in H1.
He added that shopping malls Retroville, MegaMarket Nyvky, Blockbuster Mall, Podol Mall, River Mall will be commissioned in Kyiv in the next year. A range of other shopping facilities are at a high level of construction readiness. In particular Smart Plaza Obolon, Oasis (at Heroiv Dnipra metro station), Good Life are under construction, while preparations for the construction of the second line of Auchan Rive Gauche are conducted. The shopping mall will be commissioned in Q2, 2019.
“There are several suspended facilities which might resume at any time – Lukianivka, Respublika, and Happy Mall,” the expert said and added that Kyiv-based developers are planning to build five or six more shopping malls, but have not made public information about them.
Oliynyk also said that around 400,000 square meters of commercial real estate will be commissioned in Kyiv in the next one or two year.
The expert added that the commissioning of new facilities could result into outflow of tenants from older facilities constructed in 2000 through 2010.
According to UTG, goods turnover in retail trade increased by 18% in 2017, but was 14% down from 2016 (taking into account inflation).
UTG also reported that average daily attendance of shopping malls at the beginning of May 2018 was 647 people per 1,000 square meters (against 701 people per 1,000 square meters in May 2017). Attendance of district shopping malls did not change, while in regions it was 14% down in the first months of 2018 year-on-year. According to UTG, rent rates at shopping malls in Kyiv are $15-30 for restaurants and cafes, $4-15 for cinemas, $1.5-20 for large shops (600-1,500 square meters in area), up to $70 for fashion galleries, up to $12 for electronics stores, and $1.5-15 for food retailers.