In the business centers of Lviv, rental rates have fallen sharply; in Kyiv, prices are holding.

Business centers in Lviv are going through difficult times in the third year of the war, and vacancy rates have increased to 34%. Falling rental demand has led to a 21% drop in prices year-on-year to $7-16 per square meter per month (excluding VAT and OpEx). Class A office space prices fell the most, analysts concluded.

On the other hand, in Kyiv rental rates in class A and B properties remained unchanged during the last quarter and fluctuated in the range of $16-22 and $8-15 per square meter per month, respectively. The effective rental rate for the best properties remained stable at $19 per square meter monthly.

Growing market competition requires landlords to be flexible and able to endure current challenges to remain attractive to tenants. Currently, demand mainly comes from local small- and medium-sized businesses. This segment chooses small areas that do not require additional capital investment and are ready for use, so landlords must adapt their offers to the market’s current needs.