The new supply of office premises located on the left bank of Kyiv in 2021 will amount to only about 20,000 square meters, according to the international consulting company CBRE Ukraine (Kyiv).
According to the company’s report presented during the webinar entitled “Retail Real Estate Market Analytics” on January 27, about 180,000 square meters of new office space are expected to be released on the capital market in 2021, of which only 20,000 square meters are located on the left bank of Kyiv. Among them are office buildings on Bazhana Avenue (11,000 square meters and 6,000 square meters) and the Piramida business center (2,600 square meters).
“A piece of advice to developers: you need to pay attention to the left bank, as 35% of people working in the center live there. The lack of premises on the left bank also affects the fact that people do not want to return to offices, as it takes a lot of time to go to the center. It would be good to develop the left bank as well, which is now happening gradually,” Head of Brokerage at CBRE Ukraine Anna Silvestrova said at the webinar.
According to her, projects with an area of about 20,000 square meters, located near the metro, are optimal for the left bank.
At the same time, rental rates for high-quality class A premises on the left bank will inevitably be lower than for similar properties on the right bank.
“This is unprofitable for developers, since the return on their investment will be much longer and a little more painful,” Silvestrova said.
She said that someone should launch a project that will equalize the rights of the two banks. “I think it is faster to build a business center than the fifth or sixth bridge,” the expert said.
At the same time, CBRE predicts a reduction in new supply in 2023-2024, since many projects in the early stages of construction were canceled or suspended last year.