In the first half of 2025, no new business centers were commissioned in the office market of Kyiv. This situation was caused by significant losses of office space due to missile strikes from the Russian Federation. During this period, approximately 45,000 square meters of office premises were damaged or completely destroyed in the capital.
This is reported by Business • Media
Reduction in supply and changes in the rental market
The total supply of office space in Kyiv decreased by 3% compared to the same period last year, amounting to 2.11 million square meters. Additionally, the average vacancy rate fell to 21%, which is 1.1% lower than at the beginning of the year. This was driven by increased demand from small and medium-sized companies seeking higher-quality office spaces due to affordable rental rates. The effective rent for premium properties ranged from 19 to 25 US dollars per square meter per month.
“The total supply in the capital’s office market has decreased by 3% compared to last year, down to 2.11 million square meters. Such direct losses in infrastructure highlight the vulnerability of the real estate market in wartime conditions.”
Outlook for the second half of the year and risks for new projects
It is expected that in the second half of 2025, the market may see around 73,000 square meters of new office space in five business centers. However, the realization of these projects remains in question due to a number of important factors: increasing security risks, difficulties in attracting financing, and a low level of pre-agreements with tenants. These circumstances create additional uncertainty for market participants and hinder the recovery of Kyiv’s office infrastructure.