Q3 2021

KYIV, Q3 2021

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SUPPLY AND DEMAND

According to a new report from Cushman & Wakefield in Q3 2021, occupier demand remained relatively robust with take-up estimated at around 57,800 sq m. Take-up in the sector reached around 143,000 sq m in Q1-Q3 2021, which was similar to the figure for Q1-Q3 2019, but doubled compared to the first 9 months of 2020. In contrast to its negative value in 2020, net absorption reached around 129,000 sq m in Q1-Q3 2021 (with ca. 76,000 sq m recorded in Q3 2021), thus indicating positive market dynamics.

According to Cushman & Wakefield in Q3 2021, new office supply in Kyiv amounted to around 104,000 sq m GLA, which is similar to the annual figure for 2019 and by 17% exceeds the annual figure for 2020. During Q1-Q3 2021, new office supply reached 194,000 sq m with additional 32,000 sq m GLA of offices being under construction in Kyiv and scheduled for completion by the year-end.

 

RENTS AND VACANCY

Despite significant new office supply in Kyiv, during the first 9 months of 2021 primary vacancy in the sector fluctuated in the range of 13-14% and reached 13.8% at the end of September.

According to Cushman & Wakefield since March 2020, the downward correction in occupational costs was witnessed across all office property classes in Kyiv, but still various properties were demonstrating differing rental performance. In Q1 2021, prime rents in the sector increased to USD 27 per sq m per month (net of VAT, service charge and utility payments), but remained stable during Q2-Q3 2021.