Office rental prices in Kyiv continue to decline.

Rental rates in Kyiv’s business centers have been falling during the first months of 2025. This trend occurs amid increasing pressures on tenants. In August of last year, rent for class A facilities dropped by 10%, reaching its lowest effective rate in a decade.

UTG noted that this shift is directly connected to higher energy costs, rising utility bills, and consequently increased operating expenses stemming from a rise in vacancy rates and the distribution of operating payments among a smaller number of tenants. As of February 2025, the rent for one square meter of office space was $17.20 in class A, $11.70 in class B, and $9.30 in class C. At the same time, the weighted average vacancy rates at the beginning of the year were: 28.6% for class A, 21.5% for class B, and 14.6% for class C.

UTG predicts that in the coming years, even with the loyalty and support of the international community and the potential accession of Ukraine to the EU and NATO, the number of foreign companies as consumers of office real estate will not enable a rapid absorption of the market’s available supply.