For nearly four years, the full-scale war has significantly impacted the development of the retail real estate market in Ukraine. The industry faces numerous challenges: constant air alerts, Russian shelling, destruction of shopping centers, energy supply disruptions due to enemy attacks, population migration, and a shortage of skilled workers. Despite this, the market demonstrates resilience and even growth—shopping centers are being rebuilt and becoming energy-independent.
This is reported by Business • Media
Trend of Building Small Shopping Centers
Experts emphasize that one of the leading trends for 2024-2025 is the active growth in the number of small shopping centers. Of nearly 70 new shopping centers planned to open this year and next, 54 are small-format projects. Among them are retail parks and convenience centers, with an average size of about 9,000 square meters. The new facilities are mostly being constructed in regions that are significantly distant from the combat zones.
Geography and Motivation of Investors
More than half of the new retail spaces currently under development are located in western Ukraine. This is due to the relative safety of these areas, which significantly reduces the risks of damage or destruction of the properties. Investors prefer smaller investments and are willing to wait for a return on their funds for up to 10 years to ensure the safety of their assets.
“The industry is affected by air alerts, Russian shelling, destruction of shopping centers, energy supply issues due to enemy attacks, population migration, and a shortage of labor.”
Thus, the increase in the number of small shopping centers is a response from the market to the challenges of war and changes in the consumer behavior of Ukrainians.