In the western regions of Ukraine, there is a rapid increase in demand for commercial real estate, which is a result of the active relocation of businesses from other parts of the country. According to experts, today, warehouse and production spaces in Prykarpattia, Lviv region, and Bukovina are virtually fully occupied by tenants. This has led to a shortage of available warehouses and increased competition among companies seeking new spaces for their enterprises.
This is reported by Business • Media
Rental Prices and Developers’ Strategies
Despite the high demand, rental rates in Ivano-Frankivsk remain significantly lower than in Lviv, making them more attractive compared to other cities in the region such as Uzhhorod, Ternopil, Rivne, or Lutsk. Investors in Lviv can expect a return on investment in approximately 8 years, while in Ivano-Frankivsk, this period is 12-13 years due to the lower rental rates. As a result, many local developers prefer not to sell commercial properties but instead keep them under their management, turning them into a source of stable income.
Trends in Real Estate Segments
The warehouse and production real estate segment is demonstrating the highest growth dynamics. The main reason for this is the relocation of enterprises to western regions, where businesses are seeking safer working conditions. In contrast, office real estate is developing less actively. Among the current formats are small office spaces that meet the necessary conditions for safety, quality heating, convenient location, and multifunctionality.
Experts predict that the commercial real estate market in western Ukraine will continue to expand. First and foremost, growth is expected in the warehouse and production segments, followed by retail, and eventually in office real estate.
According to experts, the relocation of businesses has caused a boom in commercial real estate in western Ukraine. However, currently, rental prices in Ivano-Frankivsk are significantly lower than in Lviv and are also more competitive than in Uzhhorod, Ternopil, Rivne, or Lutsk.