Fueled by online commerce and growing demand for faster delivery, Kyiv’s warehouses were in demand as never before in 2020, renting storage areas at prices even higher before the pandemic — up to $5.5 per square meter.
According to a report by the Cushman & Wakefield real estate consultancy, new supply in Kyiv’s logistics property sector exceeded 85,000 square meters in 2020, which is the largest annual new supply for the past six years.
But “still, it is not enough to satisfy existing occupier demand,” the report said. Overall, the total amount of warehouse space in the region reached 1.7 million square meters. The vacancy rate remains low — 2% in 2020.
According to Marta Kostyuk, head of the analytics department at C&W in Ukraine, the warehouse segment today is one of the “most promising not only in Ukraine, but also in the world.”
The COVID-19 only accelerated the interest in it. In June, right after the first major lockdown was over in the country, Ukrainian investment firm Dragon Capital bought logistical complex Falbi, which has a total area of 13,800 square meters. The market is so hot that now half of
Dragon Capital’s commercial real estate portfolio consists of warehouses.
