In the first half of 2021, in the commercial real estate market of Ukraine, there was a decrease in rental rates for office premises by an average of 0.8%, for retail space – by 10%, at the same time, rent of warehouse premises grew by an average of 3.1%, Director General of the group of companies Uvecon Volodymyr Shalaev has told Interfax-Ukraine.
“Social and economic uncertainty, as well as uncertainty with the further course of the pandemic left their mark on the situation on the commercial real estate market. Prices jumped or sank from one month to another, but one could trace the general trend towards a moderate increase in prices after the next dive,” he said.
As for the facilities put up for sale, in H1 2021 all over the country, offices have risen in price by an average of 8.4%, the cost of premises for retail has decreased by 7.5%, the cost of warehouse premises has increased in price by 8.6%.
Based on the research of Uvecon, the expert said that in the country as a whole H1 2021 there was a decrease in the prices of both rent and sales of retail and office real estate, but in the largest cities the dynamics was somewhat different.
According to Shalaev, the cost of retail space in Kyiv has remained almost unchanged: the rise in prices is an average of 0.4%, to $2,381.4 per square meter, rent increased by 1.3%, to $24 per square meter.
In Dnipro, retail space has risen in price by an average of 7.3% to $1,051.4 per square meter, rent has increased in price by 7% to $15.2 per square meter.
In Odesa, Kharkiv and Lviv, there was a decrease in the value of retail real estate by 24.6% (to $1,184.2 per square meter), 9.5% (to $1,050.3 per square meter) and 6.7% (to $1,464 per square meter) respectively.
At the same time, the average rental rates for retail premises grew in Odesa (by 22.8% to $18.3 per square meter) and in Lviv (by 1.7% to $17.6 per square meter), and in Kharkiv decreased by 8.1% to $15.9 per square meter.
Office real estate grew in major cities, both for sale and for lease, demonstrating a recovery in economic activity.
In Kyiv, in H1 2021, the cost of offices increased by an average of 18.4% to $2,269.5 per square meter, rent increased by 13.3% to $18.7 per square meter.
In Lviv, there was the most significant increase in average selling prices – by 28.7%, to $1,209.9 per square meter, rent rose by 8.1%, to $9.3 per square meter.
In Odesa, the price increase was 13%, to $1,162.8 per square meter, rent increased slightly – 2.8%, to $11 per square meter.
In Kharkiv, the average prices for office space rose by 15.4%, to $1,016.1 per square meter, rent increased by 9%, to $9.7 per square meter, in Dnipro – sale by 13.9%, to $962.9 per square meter, rent – by 3.6%, to $8.7 per square meter.
Shalaev drew attention to the fact that the largest price hike was in the segment of warehouse premises. So, according to him, warehouses in Lviv grew most of all – by 39.6%, to $342.7 per square meter, and rental rates grew by 10.5%, to $4.2 per square meter.
In Kyiv, warehouse real estate grew in price by 30.8%, to $552.7 per square meter, rental rates increased by 8.3%, to $5.2 per square meter, in Dnipro – an increase of 29.5%, to $186.8 per square meter, rent increased by 26.9%, to $3.3 per square meter.
“In Kharkiv, the growth in prices for warehouses was more moderate and in the first six months of this year amounted to only 6.7%, to $204.9 per square meter. Rent increased by 24.1%, to $3.6 per square meter. In Odesa, the cost of this property remained unchanged at $229.6 per square meter, and the rent increased by 8.8%, to $3.7 per square meter,” the expert said.
