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Kyiv shopping centers raised rent by 23% in 2017 – JLL
17:42, 15 January 2018

Kyiv shopping centers raised rent by 23% in 2017 – JLL

Experts expect increase to continue in 2018, although at a slower pace

17:42, 15 January 2018

Open source

Renting price in Kyiv’s shopping centers grew by 23% in 2017 and reached $960 per square meter annually ($80 per square meter per month). The press service of the consulting firm Jones Lang LaSalle has said this, Interfax-Ukraine reports.

“The increase of rent was influenced by a combination of the following factors: the improved purchasing power of the population, the higher demand for real estate from retailers and lack of newly completed construction. After a considerable drop in rent prices in 2013-2015, their rise was increased due to the low-base effect. Taking into account the gradual market recovery, we expect rent to continue rising. However, its growth rate is likely to slow down,” JLL (Ukraine) analyst Daryna Kulaha said.

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The shopping centers in Kyiv witnessed a record annual decline in vacancy rate – it dropped by 6.5 percentage points, to 5.6%. With the lower supply of retail space, JLL experts expect increased activity on the part of retailers in the future.

“Such brands as DeFacto, Decathlon, Koton, FLO, H&M and Zara Home are expected to open their first stores in Ukraine in 2018. All of them will be opened by parent companies, which means that Ukraine has become an attractive destination for international retail again,” head of the retail department at JLL (Ukraine) Yekateryna Vesna said.

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"The opening of the first store of DeFacto, Decathlon, Koton, FLO, H&M and Zara Home is expected in 2018. All of them will be opened directly by parent companies, which means that Ukraine has regained its attractiveness for international retail," head of the retail space department at JLL (Ukraine) Yekateryna Vesna said.

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