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🏢📦 Overview of the Warehouse and Logistics Real Estate Market in the First Half of 2025

Analytical data on this topic was presented during the CBU Business Club, which took place on July 23, 2025.

Nataliia Sokyrko, Director of the Industrial & Logistics Department at CBRE Ukraine, delivered an overview of Kyiv’s warehouse market, highlighting the factors shaping the segment in the first half of 2025.

📊 Key indicators of Kyiv’s warehouse real estate market in the first half of 2025:

🔹 Demand for lease reached 109,000 sq.m (+27% y/y), indicating a gradual recovery in activity driven by the release of pent-up demand.

🔹 Total supply in the market reached 1.47 million sq.m (+5.3% since the beginning of the year).

🔹 Vacancy remained low at 3% (-1.2 p.p. since the beginning of the year), the lowest among all commercial real estate segments.

🔹 The base rental rate in the Kyiv region ranged from $4.7 to $5.7 per sq.m/month excluding VAT and OPEX (up 2% y/y).

🔹 New supply for the half-year amounted to 107,000 sq.m (+14%).

💬 “The warehouse market went through difficult times in 2022, when about 20% of warehouse space was destroyed,” noted Nataliia Sokyrko, recalling the background of the current activity and the challenges of previous years.

🚚 Demand is primarily driven by logistics companies and retail market players. The pharmaceutical sector also remains active, while manufacturing companies are mostly shifting to 3PL services. Transactions in the first half of the year were mostly the result of expansions or relocations — not new market entrants, but existing players who have adapted to challenges and resumed strategic planning.

🏗️ Against this backdrop, development activity is regaining momentum. Although construction came to a halt in 2022, there is now renewed interest from both Ukrainian and international investors. For example, White Star Real Estate acquired 40 hectares near Bucha to develop an industrial park. CBRE also notes an increase in speculative construction: in the second half of the year, about 100,000 sq.m of new space is expected to be delivered.

🔎 Among the most anticipated projects:

🔹 Reconstruction of RLC (44,000 sq.m) and West Gate Logistics (55,000 sq.m);

🔹 Chaika V logistics complex (58,000 sq.m) and Oleksandrivskyi III (41,000 sq.m);

🔹 JOULe Alterra II & III complex (10,000 sq.m).

Speculative construction continues:

🔸 74% of the upcoming supply in the second half of 2025 will be on the speculative market;

🔸 26% will be owner-occupied premises.

🌍 The situation in Lviv’s market also shows growth. Total supply there is 298,000 sq.m, with average rental rates at $6–$6.5 per sq.m/month, higher than in Kyiv. Companies are increasingly considering western regions for risk diversification and warehouse placement due to the relative safety of the area.

💬 “It is still movement, because in a year or two we will see this change in the market, this reformatting,” Ms. Nataliia concluded.

What else was discussed during the CBU Business Club:

https://kbu.org.ua/en/news/cbu-business-club-analytics-and-dialogue-on-the-real-estate-market-in-the-first-half-of-2025 

🎥 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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