Vacancy in the capital’s shopping centers fell to 15% but may increase to 17%. What is the reason?

Vacancy in Kyiv’s shopping and entertainment centers decreased from 16.3% last year to 15.2% at the end of the first half of 2024, UTG notes. At the same time, experts pointed to a tendency toward a decrease in the population’s solvent demand against rising costs for communal services, medicine, transport, communications, and education. The retail network’s share in the cost structure is only 16% per family ($73.4 per month). General savings and cost rationalization are fixed, which causes a decrease in the number of visitors to shopping centers and a correction in rental rates. Analysis shows that, currently, solvent demand can ensure the successful functioning of 2.313 million square meters of mall real estate in the capital, and 2.457 million square meters were in operation in the second quarter. On the other hand, the competition will only intensify because, in 2024-2025, the opening of a total area of ​​250,000 square meters of commercial retail space (Ocean Mall, Lukiyanivka, April Mall, etc.) has been declared.  This, together with the population’s current income and expenses, may push the vacancy rate to 17% in 2025.