Commercial real estate issues is the most inert and conservative segment. It requires large investments, which stops many investors. There are other problems of commercial real estate that need to be considered when investing money in the market.
Analysis of the commercial real estate market showed steady growth last year. Significant progress has been made in some segments. Many owners of office and retail space managed to achieve indicators that were noted before the 2013 crisis.
On the real estate market in Kyiv, there is a trend in reducing vacancy. If last year there were 7.6% of free space in the segment, now they are 6.5%. Trade vacancy decreased to 3.8%. With increasing demand, the cost of renting space has increased. A square meter in the shopping center is $ 75, office real estate will cost $ 32. Rising prices are also associated with limited supply in the market — there is a shortage of new space.
Commercial real estate experienced a boom last year. Large foreign brands, such as H & M, entered the market in the process of signing a deal with IKEA. In addition, the approach to the formation of rental prices has changed. The owners of the premises began to tie rates to the current dollar rate.
As in the past year, shopping facilities in the best and large shopping centers are in high demand. The rental rate for such premises ranges from $ 65 to $ 95 per sq.m. For comparison, in medium shopping centers, the price varies from $ 32 to $ 50 per sq.m.
Hotel real estate also increases in value. A double room in a 3-star hotel of the capital will cost about 60 euros, in a 4-star hotel — 145 euros, in a 5-star hotel — 371 euros. The average price of a room is $ 106 with an average yield of $ 55.5.
Experts note an increase in supply in the hotel real estate segment, the number of rooms has grown by 7% and has 1,800 rooms in 110 objects. In Kyiv, opened new hotels from international and local brands.
In the warehouse real estate segment, the vacancy rate decreased to 3.8%, while the rental price increased. Monthly rates are 90-135 UAH. per sq.m.
The increase in rental rates in the commercial real estate market is observed not only in the capital. The cost of office and retail space increases in almost all major cities.
The problem of the commercial real estate market experts highlights the reduction of vacancy with an active demand. If the trend continues, there may be a shortage of office and retail space. Global brands are actively entering the domestic market, and the offer adapts to their needs, while local tenants are ignored.