Kyiv’s commercial real estate vacancy will increase.

At the Ukrainian population’s current income and spending levels, the vacancy rate in Kyiv’s shopping malls may reach 17% by the end of 2024, UTG reported. It is noted that the vacancy rate in the capital’s shopping malls decreased from 16.5% at the end of 2022 to 14.7% at the end of the second half of 2023. Also, international clothing brand stores temporarily closed, and 21.1% of the space is vacant. Before the war, 10.3% of commercial premises were empty.

“Considering the population’s current income level, solvent demand can ensure the successful operation of 2.3 million square meters of retail space. However, as of August 2023, 2.4 million square meters are already operating in Kyiv. And the 2024 inclusion of additional declared projects with a total area of more than 250,000 square meters will increase the surplus of retail space even higher and stimulate the gradual redistribution of consumer flows between objects. All this will lead to an increase in vacancy to 17% and a downward correction of rental rates”, the analysts said.