Wednesday, 13 August 2025 14:03 
🏢 Overview of Kyiv’s Office Real Estate Market for the First Half of 2025
Analytical data on this topic was presented during the CBU Business Club, which took place on July 23, 2025. The overview was delivered by Anastasiia Kachan, Senior Consultant for office real estate at CBRE Ukraine.
📊 Rental activity among small and medium-sized companies remains stable, yet the office market is losing space. Demand for offices increased by 16%, reaching 82,000 sq.m., while supply decreased by 3% (2.1 million sq.m.) due to damage to buildings housing offices (around 20,000 sq.m.).
It is worth noting that office strikes triggered additional demand from the tenants of those offices, who accounted for 20% of the total market demand in the first half of the year.
Vacancy in the market stands at about 21%.
💬 “The effective prime rate is the rate for the best premises, the top rental properties, the highest achievable rate. Previously, we presented it as a single figure; now, we present it as a range. In the past, the effective rate was influenced by the quality of the premises and their location, and these factors were more or less comparable. Now, many different factors influence these characteristics,” explains Ms. Kachan. “There is now a strong correlation with the location of the business centre. It is no longer just about proximity to the metro — it also includes proximity to infrastructure or military facilities. Each business centre can now, in fact, operate outside the typical market rules of its submarket or district.”
💰 Rental activity at present is relatively stable and has been gradually growing since 2022.
👤 Who rents offices in Kyiv? IT companies continue to generate the highest demand, though other sectors remain active. In the past six months, there has been an increase in demand from the military sector. The market is adapting to this trend by offering more complex mechanisms to meet the needs of this segment.
The expert also outlined the outlook for future supply. Since 2020, there has been a trend of announcing more space than is actually delivered. This is expected to continue in 2025, as many projects have slowed construction.
There is also a low number of new projects starting construction, primarily due to the high vacancy rate.
Key trends in Kyiv’s office market for the first half of 2025 include:
🔹 The trend toward cost optimization remains relevant: relocating companies mainly reduce their leased areas.
🔹 Demand is focused on offices with ready-made fit-outs. Premises without fit-outs are less in demand, as tenants are unwilling to invest in capital expenditures.
🔹 Tenants prioritize high-quality and safe properties equipped with shelters to ensure uninterrupted operations.
🔹 Tenants from the military and medical sectors are already generating demand for new spaces, increasingly considering not only leasing but also purchasing premises.
🔹 In professional business centres, the practice of dividing large spaces/floors into smaller lots with turnkey renovations by the landlord is becoming common.
🔹 There is no construction of new business centres per se — the market is completing projects launched before 2022.
In the first half of 2025, Kyiv’s office market shows signs of gradual stabilization: demand is rising despite shrinking supply and high vacancy. The main tenants are focused on safe, ready-to-use spaces. Going forward, the market will depend on the flexibility of supply and the ability to adapt to new conditions.
What else was discussed during the CBU Business Club:
🎥 Video recording of the first part (Ukrainian):
https://www.youtube.com/live/elRWrlPiTS0
Strategic business-partners of the CBU: East Office of Finnish Industries Oy, SKAKO Concrete A/S, NOCON NORWEGIAN CONSTRUCTION AS, VERONA SHELTERS GROUP OY
Information partners: ProfBuild, Build Portal, Property Times, RBC-Ukraine, Ukrainian Pohliad, Ukrainian National News, StroyObzor, NewsWeek, Marketer, Budynok.com.ua, Economist.com.ua, Founder
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