Results-2017 for office real estate in Kiev

22.02.2018 00:00
Articles about real estate | Results-2017 for office real estate in Kiev In 2017 there was the greatest reduction in vacancies in the history of the office market in Kiev, the volume of net absorption reached a 10-year maximum. Such data are given in the report by the company JLL. According to the company JLL, the share of free offices in Kiev in 2017 decreased by 6.1 percentage points. - from 19.3 to 13.2%, which is the most significant reduction in the indicator for the capital market for the year. The decrease in the number of vacant office areas occurred both in Class A - by 7.7 percentage points. (up to 18.3%), and in class B - by 5.7 percentage points. (up to 11.7%), and, in all districts of Kiev.

"Vacancy in the office market in Kiev has been steadily declining since mid-2015. At the moment, the vacancy rate in the Ukrainian capital has fallen below the values ​​in Moscow (13.8%) and Helsinki (14.1%). At the same time, we expect the reduction of the indicator to 8.5-9% by the end of 2018, which will allow us to outstrip Warsaw by the share of occupied office space, "comments Alexander Globina, head of the office space department at JLL (Ukraine).

Related article: How to rent an apartment, without breaking anything?

Demand is growing
The main reason for such a sharp drop in vacancy is the growing demand. During the last quarter, 65.7 thousand sq. M. Were leased and bought. m, in general for the year - more than 200 thousand square meters. m (11% more than a year earlier). The volume of net absorption of offices in 2017 amounted to 130.7 thousand square meters. m (including 40.3 thousand square meters in the 4th quarter), which is 22% higher than the result of the previous year and is the maximum for the last ten years.

"We are seeing a high interest in buying office buildings as a whole. It's about classic investment transactions (for example, last year Dragon Capital acquired the Kyiv business centers "Eurasia" and "Prime"), as well as buying for their own needs. The demand for business centers from the end users is formed by production and IT companies - sectors, which accounted for the maximum volume of transactions in 2016-2017, "notes Alexander Globin.

Offer is behind
"If demand finally recovered after the crisis, then the supply on the market is growing at a slower pace. The market of office real estate in Kiev in the 4th quarter of 2017 increased by 6 thousand square meters. m and 44.1 thousand square meters. m in general for the year. The final figure is 21% more than the result of 2016, but four times less than the pre-crisis levels of 2011-2013, - said Darina Kulaga, an analyst at JLL (Ukraine). - Moreover, we expect that in 2018 the amount of input will not exceed 40 thousand square meters. m. As vacancy decreases and with macroeconomic stability, developers will resume construction of office complexes, which will be introduced in 2019 and beyond ".

Rental rates are stable
The requested rental rates in the office market in Kiev in 2017 have not changed. The maximum base rate is at $ 28 per sq. M. m per month (excluding VAT and operating costs). The range of the base rate in business centers of class A is $ 16-28 per sq. M. m per month, in class B - $ 9-17 per sq. m. m per month. "Against the backdrop of low input volume and growing demand, we expect growth in rental rates in 2018 within 3-5%," concludes Alexander Globin.

Earlier it was reported that in 2017 there was a record volume of absorption of offices in Kiev.
Content tags: Kiev Articles
Did you like the material?Subscribe to our newsletter
Your comments:
Your opinion will be the first. Thank you for reading this article. I wish you happiness! Please share your opinion in the comment below.