The warehouse real estate market in Ukraine continues to demonstrate a persistent shortage of space in key regions, particularly in the Kyiv and Lviv oblasts. According to Ukrainian developers, even in the most active areas, there is a lack of vacant premises for rent, which affects price dynamics and strategic decisions of market participants.
This is reported by Business • Media
Shortage of Warehouses and Slow Recovery of Logistics Spaces
After the commissioning of new logistics complexes in the Kyiv region, the vacancy rate has slightly increased; however, this has not resolved the issue of space shortages. The redistribution of goods storage between regions further reduces the available premises. Kyiv remains the main logistics center of the country, but the growth of new warehouse space is occurring very slowly due to the challenging economic situation and the consequences of destruction in 2022-2023. Currently, only a few lots of 2,000-3,000 square meters are available.
“Analysts also note an increase in developer activity and plans to rebuild logistics complexes that were damaged in 2022-2023.”
Increase in Rental Rates and Stability of Sale Prices
In the context of space shortages, there is a further increase in rental rates for professional Class A and B warehouses. In May, the average rental rate for Class A warehouses in the Kyiv region is $5.4 per square meter per month, while in the Lviv region, this figure is slightly higher – $5.5 for Class A and $5 for Class B. There is a particularly noticeable shortage of large lots, which are most often of interest to large businesses. At the same time, warehouse owners are not in a hurry to sell properties or lower prices – costs remain at the level that existed before the full-scale invasion, ranging from $450 to $600 per square meter excluding VAT.
Thus, warehouse real estate remains the most sought-after segment of the Ukrainian commercial real estate market, with prices continuing to hold at a consistently high level.