With the Ukraine economy continuing to grow, demand for office space in the country is set to increase from the current level of 790,000 m2, German real estate consulting company NAI Apollo said. Occupancy rates stands at an average of 97% in the country, while rental rates are rising some 10%-15% per annum. About 200,000 m[sup]2[/sup] of high-quality office space is in the development pipeline for 2007.
With the Ukraine economy continuing to grow, demand for office space in the country is set to increase from the current level of 790,000 m2, German real estate consulting company NAI Apollo said. Occupancy rates stands at an average of 97% in the country, while rental rates are rising some 10%-15% per annum. About 200,000 m2 of high-quality office space is in the development pipeline for 2007.
Ukraine is one of the most rapidly growing retail markets in Central and Eastern Europe. Retail trade turnover grew by 23.5% in 2006 to a total of $ 31 bn, doubling the previous year's growth. With virtually no vacancies, rental rates increased by 50% last year. Yields in the retail segment are high relative to Eastern European markets or Moscow, ranging from 13%-15% for shopping centers.
Ukraine's retail growth has led to a considerable increase in demand for modern warehousing. The unmet demand is estimated at about 600,000 m2 - 1,000,000 m2. Net rents for modern warehousing facilities come to $10-12 per m2 a month. The modern warehousing facilities in the Kiev region have zero vacancy levels.