After the renewed interest of developers in the implementation of office projects in Kyiv, the volume of office space to be commissioned in 2020-2021 is 406,000 square meters, Ihor Zabolotsky, an expert of Colliers International (Ukraine) in the field of commercial real estate, has said. “Developers have become very active. The volume of new supply for 2020–2021 will be about 400,000 square meters. There is, of course, a certain discount that some facilities will not be put into operation on time. But in general, we see a huge amount of new projects,” the expert said at the Open Mind conference held in Kyiv last week.
He explained this situation has arisen due to a very low rate of commissioning new projects in the last five years, as a result of which the vacancy in the market in 2018 fell to 6.5% and still continues declining.
“In 2019-2020, the vacancy will continue falling, i.e. we will be in the lessor’s market. Many corporate tenants have already experienced this in during negotiations both with the current lessors and during the move. Accordingly, rental rates will increase,” he said.
He noted that until 2014 the annual supply in the Kyiv office market was 130,000-150,000 square meters, then decreased by three times.
