Ukraine received $3.27 bn in Foreign Direct Investment (FDI) in the first half of the year, an increase of more than 31% to the first ix months of 2006. The majority of this investment originated in Germany, Cyprus, and Austria, and focused on the industrial sector, according to a new report published on Wednesday by Cushman & Wakefield.
Ukraine received $3.27 bn in Foreign Direct Investment (FDI) in the first half of the year, an increase of more than 31% to the first ix months of 2006. The majority of this investment originated in Germany, Cyprus, and Austria, and focused on the industrial sector, according to a new report published on Wednesday by Cushman & Wakefield.
The average office yield on the Ukrainian market is now 10-11%, while retail yield is estimated at an average of 13-14%, and industrial properties yield is at 12-15%. The total stock of quality office in the Ukrainian capital is estimated at around 519,000 m2. Some 119,000 m2 of quality space is forecast to be delivered in the city by the end of 2007. Due to high demand for quality offices and very limited supply, the vacancy rate for class A offices is extremely low at 0.3%, while Class B vacancy stands a little higher at 5.6%.
Average rental rates have grown by more than 30% this year, according to C&W. The length of lease terms is growing, as tenants seek to lock up current rental rates. Five year leases are now the market norm, with tenants taking 6,000 m2 or more looking to sign for seven to ten years.