Demand for commercial real estate is growing. But only in Kyiv
1 May 11:49
Retail property purchases have picked up in Kyiv. The capital has become the only major city where the demand for retail space has increased significantly. This was reported by delo.ua with reference to the data of OLX Real Estate research, "Komersant Ukrainian" informs.
The main trend as of March 2025 is an increase in prices and a decrease in supply.
How much can you buy retail space for
Kyiv is expected to be the leader in terms of the median price of buying retail space – UAH 8.3 million, which is 14% more than in March 2024.
Prices in other cities with more than one million inhabitants also increased in the first quarter of 2025:
in Dnipro – by 29%, to UAH 4.1 million
in Lviv – by 12%, to UAH 3.1 million
in Odesa – by 9%, to UAH 3.5 million.
In contrast, in frontline Kharkiv, the price dropped by 4%, from UAH 2.1 million to UAH 2 million.
What is the demand for commercial real estate?
Kyiv was the only major city where the demand for retail space increased significantly – by 31% as of March 2025.
In other major cities, there is a decrease in supply and demand. This is most noticeable
in Dnipro – the number of ads decreased by 33%, and the number of responses decreased by 43%;
in Lviv, the number of ads decreased by 37%, while the number of responses decreased by 26%;
in Odesa, the number of ads decreased by 22%, while the number of responses remained at the level of 2024 – plus 4%.
What about retail space leasing?
As of April, the median price in the retail leasing market increased the most over the year in Dnipro, up 52% to UAH 17 thousand.
However, the most expensive rental space is in Kyiv, where the median price is UAH 38 thousand, which is 15% higher than in March 2024.
In Odesa, the cost of rent increased by 25% to UAH 19 thousand, and in Lviv the rental price increased by 9% to UAH 18 thousand.
In Kharkiv, however, as of March 2025, there were no changes – the median rental price is UAH 12 thousand, the same as in March 2024.
The OLX Real Estate platform also shows a downward trend in the number of ads for retail space in the largest cities of Ukraine. The supply has changed most noticeably in Kyiv: the number of ads has decreased by 22% compared to March last year.
The number of responses to retail lease announcements also decreased compared to March last year – minus 30% in Kharkiv, minus 24% in Lviv and Odesa, minus 22% in Kyiv and minus 19% in Dnipro.
What happened to rents in the capital last year
Rents in Kyiv shopping centers showed moderate growth in the second half of last year. This was due to the recovery of retail turnover and increased demand from retailers. This is stated in a study of the retail real estate market in Kyiv by CBRE Ukraine.
Rental discounts were becoming less common, especially in successful shopping centers that have already approached pre-war operating performance. The practice of renting based solely on a percentage of turnover also gradually disappeared, replaced by fixed base rates.
As a result, rents for a typical 100-200 sq m retail gallery in the best locations ranged from $40-$70 per sq m per month, up 8% YTD. Instead, rents in regional shopping centers ranged from $18-$38 per sq m per month, up 15% since the beginning of the year.
