In the first six months of 2025, Kyiv recorded a 16% increase in gross absorption of office space compared to the same period last year, reaching 82,000 square meters. A significant portion of the demand, about 30%, arose from the forced relocation of companies from damaged buildings, indicating instability in the office real estate market.
This is reported by Business • Media
Demand Driven by the IT Sector and Government Entities
The main drivers of demand for Kyiv offices remain companies in the IT and telecommunications sectors. At the same time, there is active interest from representatives of the public sector, non-governmental organizations, and enterprises in the industrial and energy sectors. The most common type of transactions continues to be relocations—both forced and planned. They account for 40% of the total number of contracts signed.
“The share of transactions involving the expansion of office space reflects cautious optimism among businesses regarding the future.”
Hybrid Work and Changing Demand Structure
The implementation of a hybrid work model has resulted in only 30-40% of employees being in the office at the same time. This allows many companies to reduce their leased space to half of pre-war levels. The saved funds facilitate relocation to higher-class offices without increasing rental costs.
At the same time, strategic expansion is being observed in the IT, manufacturing, pharmaceuticals, and medical sectors. This indicates positive expectations among businesses regarding the prospects for long-term growth and stabilization of the economic situation in Ukraine.