The total supply of office space in Kiev increased by 34 thousand square meters, or 4%, to 2.26 million square meters in 2024, the press service of CBRE Ukraine told Interfax-Ukraine. According to the latest research of Kyiv office real estate market by CBRE Ukraine, business centers Tw12ve (16 thousand sq. m.), Heritage (13.3 thousand sq. m.) and Stoic (4 5 thousand sq. m.) were commissioned in 2024.
The rate of commissioning of new office space last year was the lowest since 2017. Among the key factors limiting developer activity, CBRE Ukraine highlighted security risks and uncertainty, rising construction costs, limited access to financing and a shortage of skilled labor.
At the same time, rental market activity increased: the volume of annual gross absorption amounted to about 129 thousand sqm (+42% y/y).
“It is noteworthy that the volume of absorption in 2024 corresponds to the level of 2020 and remains only 4% lower than in 2021, reflecting almost a return to pre-war market conditions,” said Anna Silvestrova, Senior Director of Office Real Estate and Tenant Relations at CBRE Ukraine.
The structure of gross absorption was dominated by small transactions of 200-500 sqm, while large transactions of over 4-5 thousand sqm were sporadic, although several significant transactions supported the market. The structure by business sector was dominated by IT and telecom companies with a 25% share (-26% YoY), followed by the public sector (government or non-profit organizations) with a 15% share (-8% YoY).
Moves continued to lead by deal type with 38% (-20pc y/y), rising to 25% (+15pc y/y) of exit deals.
“While in the pre-war period relocations were mainly driven by lease expirations or staff expansions/downsizing, current market conditions have led to a structural shift, allowing companies that were previously non-users of professional office space to move into Class A and B properties. This trend has attracted new tenants to areas previously dominated by large corporate companies, emphasizing the growing availability of quality office space,” says Silvestrova.
The average vacancy rate on the office real estate market decreased by 2.7 p.p. since the beginning of the year to 22% y/y. This was the first significant year-on-year increase in occupancy since pre-war 2021 (when vacancy was at 14.1%).
The bulk of vacancy was concentrated in new developments, some of which are almost entirely vacant, as well as in lower quality buildings typically located outside the DDR. Notably, Class B vacancy fell significantly to 22.1% (-5pc YTD), mainly due to tenants moving out of non-professional properties. At the same time, vacancy in Class A office space remained stable at 22.7% at the end of the year.
The effective prime rate remained stable at $19/sqm/month. Asking rental rates in Class A and B facilities fluctuated within $16-22/sq.m/month and $8-15/sq.m/month respectively.
The gap between declared and effective rates in the best properties continues to narrow, indicating that landlords have shifted to a more realistic approach to pricing. The market has predominantly returned to standard 3-5 year leases with more flexible terms, including early exit options. However, in some cases there is still a practice of locking in favorable lease terms until the end of martial law or for a term mutually agreed upon by the parties.
“We expect that rental activity should maintain positive momentum in 2025, contributing to further growth in office occupancy. Tenants will continue to focus on quality office buildings with safety shelters in sought-after locations, while properties that do not meet these requirements will continue to face occupancy issues,” says Silvestrova.
In the absence of significant security or economic shocks, she says, the market is poised for a gradual but steady recovery, especially with the widely anticipated end of hostilities in 2025.
Headquartered in Dallas (USA), CBRE is the world’s largest commercial real estate consulting and investment company with revenues of $35.8 billion in 2024. CBRE Group Inc. shares are traded on the New York Stock Exchange.
CBRE’s Ukrainian office was opened in January 2008 and is part of the company’s affiliate network. In 2023, the Ukrainian office expanded its presence in Moldova under the CBRE Moldova brand.
The European Commission may reconsider the regime of autonomous trade measures for Ukraine, which was introduced after the start of Russia’s full-scale aggression, extended twice for a year and now expires on June 5 this year, European Commission Vice-President Maroš Šefčovič said.
“Autonomous Trade Measures (ATMs), which provide for traditional liberalization, will remain in force until June 5. I would like to assure you that after the end of the ATC, we are fully committed to ensuring a smooth transition and rapid implementation of mutual liberalization of trade in agri-food products,” he said at a joint meeting of the Ukrainian government and the European Commission on Monday.
“As you know, this will be a very delicate task for us, given the sensitivity of some products for the markets of our member states and, of course, the concerns of our farmers,” added Šefčovič, who in the new EC composition oversees the direction of trade.
As reported, the EU Council on April 8 approved a decision to extend the suspension of import duties and quotas on Ukrainian exports to the EU until June 5, 2025. At the same time, the EU strengthened the protection of sensitive agricultural products of member states, obliging the European Commission to impose tariff quotas on poultry meat, eggs, sugar, oats, corn, cereals and honey from Ukraine, in case of exceeding the arithmetic average of the volumes imported in the second half of 2021, 2022 and 2023.
Forecast of unemployment rate in Ukraine according to methodology of international labor organization until 2025
Source: Open4Business.com.ua
Ukrainian chain Gabar, which is developed by Vladimir Matviychuk, one of the co-owners of retailer Galia Baluvana, has opened the first fast food establishment MultiBar in Krakow, the chain’s press service said on Facebook.
“We have pleasant news. Opening of a new generation fast food MultiBar from Gabar chain in Krakow, Poland! Friends, we are very pleased to announce that we have opened. You have been waiting for so long, and now your favorite dishes are available already in Krakow”, – said in the message.
Gabar added that the cafe operates at Wielicka 259, Krakow, 30-663.
Earlier, the first Multicook frozen meal store with fast food MultiBar started operating in the US Los Angeles. Then Matviychuk noted that in the future all Multicook will be opened in a format with MultiBar. It is planned to open 150 such establishments abroad by the end of 2025.
As reported, adapted to the European market franchise of the Ukrainian chain of stores “Galia Baluvana” under the Multi Cook brand has been developing since 2022. At the moment it is represented by more than 250 stores in 25 countries. In parallel with the Multi Cook brand another direction is developing abroad – Multibar. This is a chain of establishments that offers visitors ready-to-eat and on-site meals.
According to Poster POS research, the chain “Galia Baluvana” in 2025 took the second place in the TOP-10 restaurant companies in terms of the rate of opening new locations. It opened 70 locations in Ukraine. In addition, the company continues to develop other projects: Gabar establishments (9 new locations), Polish franchise Wesola Pani (40 new locations) and MultiCook abroad (150 new locations).
Italy will join the processes of Ukraine’s reconstruction, in particular the restoration of the energy sector, says Italian Deputy Prime Minister and Foreign Minister Antonio Tajani.
“There can’t be negotiations without Ukraine and without Europe. It is impossible to agree on an agreement without Ukraine and without Europe…. Peace must come together with strong security guarantees for Ukraine,” he said on Monday in Kiev, speaking at a plenary session of the ‘Support Ukraine’ program.
According to Tajani, peace must be stable and lasting for Ukraine, and Italy would be happy to discuss Ukraine’s future. “Rebuilding, rebuilding, trade. We want tourists to visit Ukrainian cities and Ukrainians to visit our universities and our cities. We will participate in the rebuilding process,” he emphasized.
According to the Deputy Prime Minister, Italy, in particular, will join the restoration of the energy sector.
“We are organizing an international conference on reconstruction. It will be held in Rome on July 10-11 this year. We want to organize what will be a huge success for Ukraine,” Tajani informed.
The agriculture ministers of Hungary, Bulgaria, Romania and Slovakia have called on the European Commission to return to pre-war quotas after the end of autonomous trade measures in trade in Ukrainian agro-products, Hungarian Agriculture Minister Istvan Nagy said on Facebook.
“There are things we do not allow! We protect the interests and livelihoods of farmers from Ukrainian agricultural products. In a joint letter with my colleagues the agriculture ministers of Bulgaria, Romania and Slovakia called on Brussels to take action,” he wrote.
The Hungarian minister recalled that the EU regulation governing imports from Ukraine ends in June 2025, so the European Commission must find a long-term solution to market difficulties arising on the European market due to Ukrainian agricultural products.
“In the joint letter, we called on the committee to return to pre-war quotas, to introduce measures to protect agricultural products, to introduce automatic protection and individual quotas for member states on a regional basis. In addition, we also asked Brussels to require EU plant health and health protection, animal welfare, health and environmental protection for Ukrainian agricultural products,” Nagy said.
He specified that Hungary wonders whether Brussels will take into account the interests of Eastern European farmers this time or betray them again, as it happened in September 2023, when the ban on imports of Ukrainian agricultural products to the EU was not extended.
Nagy assured that Hungary will keep import restrictions on Ukrainian agricultural products in its national jurisdiction as long as there is no need to protect Hungarians.
“We are in solidarity with Ukraine, but we will protect the viability and competitiveness of farmers,” the Hungarian agriculture minister summarized.
