What is happening in the Ukrainian office real estate market in the third year of the war?

The market for office space continues to decline, continuing the trend that began after the beginning of the pandemic in 2020. The supply of new locations in the market is growing, and demand is decreasing; as a result, the rental rates for all classes of business premises are falling. Analysts say that tenants are moving from old facilities to first-class business centers.

Companies that previously leased class B space have now focused on class A sites, particularly new office buildings that entered the market in 2020-2022 and offer very favorable rental rates. Another reason for the stagnation of the market is the lack of potential new large office tenants due to the war.

Only two office buildings were opened in Kyiv in the first half of the year. Earlier, four new projects planned to add 51,000 square meters of office space to the market by the end of the year. However, only two B class objects have opened. This is a modest addition compared to the growth rate in 2022.