Real Estate

Friday, May 28

Apartment prices in Kyiv could nearly double – to $2,000 per square meter — by the end of 2023, predicts Serhiy Pylypenko, general director of Kovalska construction and construction materials company. Driving prices up 15-20% this year will be the rising cost of building materials, he told the C...

Budhouse Group, one of Ukraine’s largest developers, plans to invest €314 million in three projects over the next three years, Anatoliy Shkribliak, company founder and shareholder, tells Interfax-Ukraine. In Odesa, the group is spending €12 million to complete work on Yessa shopping and entertainment center, aiming for openin...

Thursday, May 27

Dragon increased its Kyiv warehouse holdings by 50% last week by buying a 100,208 square meter office and logistics complex in Bilogorogoda, six km from the Kyiv ring road, between the Odesa and Zhytomyr highways. With the purchase of Amtel Logistics Complex, Dr...

Wednesday, May 19

The privatization drive is “irreversible, ” Kyrylo Tymoshenko, Deputy Presidential Chief of Staff, wrote on Facebook after President Zelenskiy chaired an inter-agency Zoom call Monday on the campaign. Over the next six weeks, there are to be ...

Monday, May 17

Ukrposhta’s iconic Stalin-era headquarters on Kyiv’s Independence Square could find a second life as a casino, Smelyansky told the Kyiv Post. He said: “We are converting old infrastructure to a new, modern use. You cannot constantly live in the past.

Thursday, May 6

Construction companies reported positive expectations for the first time since September 2019 on the back of a seasonal rebound in activity and rising investment demand for housing construction. The sector’s index finally moved above its equilibrium level in April, to 51.5, up from 40.6 in Mar...

Estonian shareholders of Arricano Real Estate Plc registered in Cyprus, the management company and developer of a number of shopping and entertainment in Ukraine, have demanded $750 million in compensation for what they say is the illegal seizure of Sky Mall in Kyiv. “According to the press service of Arricano, after filing the notification, the parties have six months to settle the dispute before arbitration. If the parties fail to agree within the specified peri...

Friday, April 30

President Zelenskiy yesterday signed a law allowing resumption of sales of large state companies, a privatization process that was suspended one year ago due to the coronavirus pandemic. All sales are to go through electronic auctions. Zelenskiy said: ““Despite the coronavirus crisis, our goal of ...

Ukroboronprom, the defense industry conglomerate, has reorganized its structure to eliminate Mustafa Nayem, the reformer who worked for two years as Deputy General Director for Asset Management. “Today is my last day at Ukroboronprom,” Nayem wrote yesterday on Facebook. Of his work, he wrote: “Our tea...

Monday, April 26

On Thursday, Odesa’s 12-story Victoria Hotel will be put up for auction by the Deposit Guarantee Fund. Located a 10-minute walk from Arcadia beach, this Black Sea hotel has 229 rooms. The starting price is $7 million. The hotel is one of 862 assets that the Fund will be s...

Ukraine’s goal of quadrupling revenues from the sale of state companies this year “is entirely realistic,” wrote Dmytro Sennychenko, the Head of the State Property Fund, in an Atlantic Council blog: “Ukraine moves closer to large-scale privatization breakthrough.” The $430 million goal will be met through the sa...

The 17 state defense enterprises transferred to the State Property Fund 10 days ago are “the remnants of property that has been torn apart, plundered, ” said Yuriy Husev, Director General of Ukroboronprom, the defense production conglomerate, in an online forum last week. With names like the Ivano-Frankivsk Boiler and Welding Plant, the Transcarpath...

Friday, April 23

Bolshevik, the oldest machine building plant in Kyiv, will probably be sold for the value of its 35 hectares of prime real estate, predicts Dmytro Sennychenko, head of the State Property Fund. Founded 140 years ago by a Swiss engineer, the state-owned factory has fallen on hard times, with production dwindling and bushes growing ...

Thursday, April 22

By this time next year, work should start on Ukraine’s first highway built by a private construction company as a concession, Alexander Kubrakov, head of Ukravtodor, told the Transport Infrastructure Forum. There will be two types of concession: road repair and building a road from scratch. The head of the highway agency sai...

Friday, April 9

Poland’s BGK Bank has agreed to fund 60% of the first phase of Lviv’s Innovation District IT Park, the technology park has reported. The State-owned Bank, Gospodarstwa Krajowego, will loan €81.5 million for the €136 million first phase of development. With a first phase expected to be completed by ...

In Lviv, the continuing investment in property development includes the construction of a business and city administrative center on a prime 7-hectare lot which had previously been a military base, the Lviv City Council has announced. The triangular lot which is located 1.7 kilometerss west of Rynok Square, is to become a mixed use area. The project will include a park, a business center, a cong...

While shopping malls close in the US, they have a future in Ukraine, said Sergiy Sergiyenko, Managing Partner of CBRE Ukraine, (Kyiv Post). “Living in Kyiv and Ukraine, in general, there are no quality public spaces in winter…So, people go out and go to a mall,” he said add...

During the pandemic year, online shopping increased by 26% and shopping mall rents softened. Despite these conditions 20 new malls are expected to open across Ukraine by the end of next year. This will add a total of 1.8 million square meters of leasable area, reported the Kyiv Post. This year, Kyiv is to see the openings of Ocean Mall with 100,000 square meters and Blockbuster Phase 3, wi...

The e-commerce boom pushed Kyiv warehouse vacancy rates down from 30% to 2%, according to a new report by Cushman & Wakefield, the real estate consultancy. Although 85,000 square meters of new space were commissioned last year, rates have increased to $5.5 per square meter. “It is not enough to sat...

Retailers from neighboring Poland and Turkey aggressively court Ukrainian consumers , introducing their brands and opening stores, said Konstantin Oliynyk, UTG (Interfax-Ukraine). Brands from Poland include: LPP, Sinsay, CROPP, House, MOHITO, Reserved. Turkish retail brands include: ...

Remote working will cause a 25% shrinkage of Kyiv’s ‘office footprint’ by 2024, predicted Sergiyenko of CBRE, (Kyiv Post). “In other words, if there are 2 million square meters in total supply — 400,000 to 500,000 square meters will be vacated,” he says. However, he cautions: “Offices are ...

Kyiv’s office vacancy rate doubled last year, to 11%, the highest level since 2014. In turn, rents fell by 10 to 20%, reported the Kyiv Post. Faced with uncertainty in the pandemic year, CBRE Ukraine said that developers offered only 125,000 square meter...

Rents are softening during the April lockdown, with discounts up to 30% expected, said Yuri Pita, President of the Association of Realtors of Ukraine, (Interfax-Ukraine). Assuming the coronavirus pandemic ebbs in May, rents will stabilize. However, he adds: “In the face of accelera...

Ukraine’s real estate magnates were recently ranked by Forbes Ukraine. The top eight are: Viktor Polishchuk, owner of Gulliver and the Eldorado retail chain. $70 million Vagif Aliyev, developer of Blockbuster Mall, Lavina Mall, and Mandarin Plaza. $61 million Tomas Fiala, founder/CEO of Dr...

Monday, April 5

The government’s ‘Big Construction’ program will invest in infrastructure for four industrial parks this year, Oleksiy Chernyshov, Minister for Community and Territorial Development, says according the government website. The announcement came at a meeting with Dragon Capital, which is building two industrial ...

Friday, April 2

To promote ‘green’ energy efficient commercial real estate, the EBRD is lending Dragon Capital $12.5 million for construction on Grand Business Center and two warehouses, one in Brovary and one in Kharkiv. Last July, Grand Business Center became Kyiv’s first office building to receive a sustainability certificate under the Building Research Establishment Environmental ...

The first large scale privatizations of public enterprises are to take place this summer , Prime Minister Shmygal announced on Telegram. After meeting with Dmytro Sennychenko, the Head of the State Property Fund, Shmygal wrote that top candidates for auction are: Kyiv’s President Hotel, K...

Wednesday, March 31

The Rada passed a bill yesterday to resume privatization of large state owned corporations – one year after sales were suspended due to the coronavirus pandemic. The State Property Fund hopes to raise as much as $430 million this year by selling six large state companies, including Kyiv’s President Hotel, Kyiv Bolshevik Plant, the Odesa Portside Plant and Unit...

Addressing the aftertaste of corrupt privatizations of the 1990s , Sennychenko wrote: “The speculation that someone wants to buy up state property cheaply will not work! Absolutely transparent privatization auctions with offers for any wallet demonstrate only...

Private investment will breathe economic life into dead state assets, Economy Minister Ihor Petrashko wrote on the Ministry website. He said: “Removing restrictions on the sale of large state-owned enterprises will not only fill the state budget, but also attract large ...