Ukraine's property market is booming and attracting billions of euros in investment from major foreign players, largely in the commercial real estate sector. Terry Pickard, managing director of the Ukrainean arm of NAI Global told Kiev newspaper Kyiv Post that the rush in the countries is the fiercest he’s seen in his 15 years in Ukraine. This makes Ukraine’s real estate one of the most lucrative investments in eastern Europe.
Ukraine's property market is booming and attracting billions of euros in investment from major foreign players, largely in the commercial real estate sector. Terry Pickard, managing director of the Ukrainean arm of NAI Global told Kiev newspaper Kyiv Post that the rush in the countries is the fiercest he’s seen in his 15 years in Ukraine. This makes Ukraine’s real estate one of the most lucrative investments in eastern Europe.
The boom is set to continue, experts say, as demand for commercial real estate is far outstripping the current supply, pointing to years of continued strong growth and high profit margins. Pickard said developers built about 150,000 m2 of new commercial space in Kiev last year, up on the 90,000 and 105,000 built in 2004 and 2005.
The boom in commercial property is being driven by demand from foreign businesses looking to set up shop in the country. Pickard said the shortage of supply can be seen right across the property sector, with a shortage of top class office space, decent hotel rooms and warehousing space.
The property boom has attracted players like Israel’s Benny Steinmetz, whose Seven Hills development company announced last month it was financing three projects in Kiev valued at more than $ 1 bn (EUR 743 mln). Domestic players are staying in the race, as Ukraine’s XXI Century is also backing projects worth over $ 1 bn. Russia’s Mirax Construction is building a 44 office building in the capital with an estimated price tag of $ 300 mln.