Business news from Ukraine

UTG TO CONDUCT PRESS CONFERENCE “HALF-YEAR RESULTS IN REAL ESTATE MARKET OF UKRAINE 2019”

On Wednesday, July 10, at 10.30, the press center of the Interfax-Ukraine news agency will host a press conference by UTG entitled “Half-Year Results in Real Estate Market of Ukraine 2019: Main Trends and Challenges.” Participants: UTG Director Yevhenia Loktionova, head of the strategic consulting department at UTG Kostiantyn Oliynyk, deputy head of the strategic consulting department at UTG Oksana Havrylevych (8/5a Reitarska Street). Accreditation of journalists by phone: +38 067 216 4343, +38 044 537 2364, or by e-mail: pr@utg.kiev.ua.

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SHARE OF VACANT SPACE ON OFFICE REAL ESTATE MARKET IN KYIV FALLS BY 0.4% POINTS

The share of vacant space on the office real estate market in Kyiv in the first quarter of 2019 fell by 0.4 percentage points (p.p.), reaching 7.2%, the press service of Jones Lang LaSalle (JLL) in Ukraine has reported. “We expect a further decline in vacancy, although not significant. On the one hand, the low commissioning volume that has been observed on the market since 2015 and steady demand contribute to the absorption of space in existing buildings, on the other hand, rising rental rates restrain the activity of tenants,” Head of office Group at JLL, Alexandra Globina said.
The highest rental rates in class A facilities in the first quarter of 2019 increased 6%, to $32 per sq. m. a month, which corresponds to the value of five years ago, according to JLL. At the same time, rental rates in class B facilities also increased to $25 per sq. m. a month.
According to JLL, a decrease in vacancy and an increase in rental rates have led to a gradual increase in developer activity.
The total volume of transactions in the office real estate market in Kyiv in the first quarter of 2019 amounted to 22,500 square meters, with about half of the transactions accounted for IT-companies, JLL experts said.

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