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Ukraine Real Estate Report Q1 2014

Ukraine Real Estate Market: New market analysis published

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2014-02-07 20:45:03 - Ukraine Real Estate Report Q1 2014 - a new market research report on

The Ukrainian real estate sector is slowly recovering from the effects of the economic downturn, with the office and industrial sectors faring the worst, leading to high vacancy rates and low rents. Retail, on the other hand, provides some hope, with the country touted to have the fifth fastest-growing retail market in Europe over the next few years. However, the country is still battling against poor macroeconomic conditions, with bureaucracy and reports of corruption having a knock-on effect on investor interest.

Ukraine is attempting to emerge from the economic doldrums that have sent rental prices in all three of the sectors covered by the Real Estate report - office, retail and industrial - tumbling. Industrial has the lowest rental rates of



all three, although reports of industrial cooperation between Ukraine and Russia could result in increases over the longer term. Market saturation is deemed to be one of the reasons why Kiev has a worryingly high vacancy rate in terms of office space, with concerns that it could reach as high as 10% by end-2014, hampered by the creation of 12 additional business centres that are not needed and are likely to remain dormant.

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