New supply on the office real estate market in Kyiv in 2019 was around 100,000 square meters and record-hitting 255,000 square meters of areas are announced to go live in 2020
“Over the past four years, the Business Expectations Index in construction has grown significantly (137.9 points) and has broken an eight-year record. Thus, the new supply almost doubled compared to 2018 and amounted to about 100,000 square meters, and the total supply of office space in Kyiv amounted to 1.8 million square meters,” CBRE Ukraine (Kyiv), the consulting company, said in a press release.
According to developers’ announcements, in 2020 a record number of areas should enter the market – about 255,000 square meters. Moreover, in 2021 an additional 250,000 square meters is expected to go live and in 2022 some 250,000-300,000 square meters.
“The shortage of quality space in Kyiv resumed the activities of developers, as evidenced by an increase in the volume of new supply by 70% year-over-year in 2019. Despite such a sharp increase in the volume of new space, it is expected that the bulk of it will be absorbed by IT and the flexible office segment, due to pent-up demand for large quality areas,” CBRE Ukraine said.
Thus, the average vacancy rate is likely to remain at the same level or show a slight increase in the best areas on the market.
“If in the next two to three years, demand will correspond to the supply, then significant fluctuations in rental rates are not expected,” CBRE Ukraine said.
Real wages in Ukraine in February 2019 compared with February 2018 increased by 10.7%, while compared with January 2019 it decreased by 1.7%, the State Statistics Service has reported.
According to the service, the average nominal wage of full-time employees in February 2019 compared with the previous month increased by 2.2%, in annual terms by 20.4%, reaching UAH 9,429.
The authority said that in January 2019 it amounted to UAH 9,223, in December 2018 – UAH 10,573, November – UAH 9,161, October – UAH 9,218, September – UAH 9,042, August – UAH 8,977 and July – UAH 9,170.
According to the statistics department, the largest increase in the average wage of full-time employees in February 2019 compared with February 2018 was observed Donetsk (25.1%), Vinnytsia (23.3%), Zaporizhia (22%), Ternopil (21.6%), Kyiv (21.5%), Kharkiv (21.4%), Poltava (21, 3%), Dnipropetrovsk (21.2%), Mykolaiv (20.9%), Sumy (20.4%), Ivano-Frankivsk (19.5%), Rivne (19.4%) regions and in Kyiv city (19.7%).
The highest level of wages in the past month was recorded in Kyiv city – UAH 14,513, and the lowest in Chernivtsi region – UAH 7,186.
In February 2019 compared with the same month of 2018, wages increased the most in professional, scientific and technical activities – by 37.1%, financial and insurance activities – by 26.3%, in construction – by 25.8%, industry – by 25%, in the field of IT and telecommunications – by 24.2% in transport, warehousing, postal and courier activities – by 24%, in real estate operations – by 21.4%, agriculture – by 21.3%, healthcare – by 20.6%, administrative and support services – by 20.2%.