Office Market Snapshot, Kyiv, Q1 2018
Q1 2018 remained largely stable for Ukraine’s economy. Oxford Economics projects that real GDP will increase from 2.5% in 2017 to little over 3% in 2018-2019, due to stronger private consumption and public investment. In Q1 2018, the currency exchange rate continued to demonstrate reduced volatility.
During Q1 2018, primary vacancy in the office property sector in Kyiv reached 8.7% compared to 8.9% at the end of 2017 and 15.6% in late 2016. At the same time, vacancy in CBD reached 5%.
Despite the developing shortage of available office space in Kyiv, in the short term pipeline office delivery remains at low levels, with approximately 16,000 sq m GLA delivered in Q1 2018 and an additional 63,500 sq m GLA planned for commissioning until the year end. In Kyiv there are also several frozen office projects totaling to around 181,000 sq m GLA.