Office rental prices in Kyiv have stopped declining due to increased demand from foreign arms manufacturers.

After a prolonged decrease in rental prices in Kyiv’s business centers, rates have stabilized for the first time since the war began. It is noted that in July, rent per square meter was $17.2 in class A, $11.9 in class B, and $9.8 in class C (excluding VAT and other related costs). Meanwhile, the weighted average vacancy rate in Kyiv’s business centers was 28.2% in class A, 20.5% in class B, and 14.2% in class C.

Experts highlighted that a decline in the number of international companies and their representative offices in Ukraine was negatively impacting the office real estate market, but demand for offices has started to grow thanks to defense companies. Ukraine has become a real-world testing ground for advanced modern weapons systems, and global defense industry giants are launching or negotiating the opening of joint production facilities, factories, research centers, and office spaces in the country. Among these are companies from Germany (Rheinmetall, KMW), Turkey (Baykar), Norway (Kongsberg), Latvia (Atlas Aerospace), Great Britain (BAE Systems), the US (Northrop Grumman), as well as firms from Denmark, France, Italy, Spain, Poland, and many others.