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Ukraine Real Estate Report Q3 2014

  • ID: 2845426
  • May 2014
  • Region: Ukraine
  • 66 pages
  • Business Monitor International
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FEATURED COMPANIES

  • Aerobud
  • Dragon UPD
  • Kyivmiskbud Holdings
  • Seven Hills LLC
  • TMM
  • XXI Century Investments
  • MORE

The Ukrainian real estate sector is slowly recovering from the effects of the global economic downturn,
with the office and industrial sectors faring the worst, leading to high vacancy rates and low rents. Retail, on the other hand, provides more than a glimmer of hope, with the country tipped to have the fifth fastestgrowing retail market in Europe over the next few years. But, Ukraine is still battling against poor macroeconomic conditions, with bureaucracy and reports of corruption having a knock-on effect on investor interest. Furthermore, growing secessionist tensions in the eastern regions and the annexation of Crimea by Russia are severely undermining investor confidence in the country.

Ukraine is attempting to emerge from the economic doldrums that have sent rental prices in all three of the sectors covered in BMI's Real Estate report - office, retail and industrial - tumbling. Industrial has the lowest rental rates of the three, although reports of industrial cooperation between Ukraine and Russia could result in increases over the longer term. Market saturation is deemed to be one of the reasons why Kiev has a worryingly high vacancy rate in terms of office space. The city has been hampered by the creation of 12 additional business centres that are not needed and are likely to remain dormant, and there is concern the vacancy rate could reach as high as 10% by end-2014. Our recent 2014 real GDP growth downgrade to
-4.4% suggests that the siutation is going to get worse before it gets better.

Note: Product cover images may vary from those shown
2 of 4

FEATURED COMPANIES

  • Aerobud
  • Dragon UPD
  • Kyivmiskbud Holdings
  • Seven Hills LLC
  • TMM
  • XXI Century Investments
  • MORE

BMI Industry View 7

Recent Developments 7

Key BMI Forecasts 8

SWOT 9

Political 11

Economic 12

Business Environment 13

Industry Forecast 14

Office 14
Table: Forecast Rents, 2013-2014 (USD per m2/month) 15
Table: Forecast Net Yield, 2010-2017 (%) 15

Retail 16
Table: Forecast Rents, 2013-2014 (USD per m2/month) 16
Table: Forecast Net Yield, 2010-2017 (%) 17

Industrial 17
Table: Forecast Rents, 2013-2014 (USD per m2/month) 18
Table: Forecast Net Yield, 2010-2017 (%) 18

Construction And Infrastructure Forecast Scenario 19
Table: Construction And Infrastructure Industry Data (Ukraine 2012-2017) 19
Table: Construction And Infrastructure Industry Data (Ukraine 2018-2023) 20

Macroeconomic Forecasts 24

Economic Analysis 24

Risks To Outlook 27
Table: Ukraine - Economic Activity 28

Industry Risk Reward Ratings 29

Central And Eastern Europe - Risk/Reward Ratings 29
Table: Central And Eastern Europe Real Estate Risk/Reward Ratings 29

Ukraine - Risk/Reward Ratings 30

Rewards 30

Risks 30

Market Overview 32

Kiev 32

Kharkov 33

Dnipropetrovsk 34

Office 34
Table: Historic Rents - 2011-2013 (USD per m2/month 34
Table: Net Yield, 2012-2014 (%) 35
Table: Terms Of Rental Contract/ Leases - H2 2013 36

Retail 36
Table: Historic Rents - 2011-2013 (USD per m²/month 37
Table: Net Yield, 2011-2014 (%) 38
Table: Terms Of Rental Contract/ Leases - H1 2013 39

Industrial 39
Table: Historic Rents - 2011-2013 (USD) per m2/month 40
Table: Net Yield, 2011-2014 (%) 40
Table: Terms of Rental Contract/ Leases - H113 41

Competitive Landscape 42

Real Estate 42

Construction Companies 43

Company Profile 44

Aerobud 44

Kyivmiskbud Holdings 46

Seven Hills LLC 48

TMM 50

XXI Century Investments 53

Dragon UPD 56

Demographic Forecast 58
Table: Ukraine's Population By Age Group, 1990-2020 ('000) 59
Table: Ukraine's Population By Age Group, 1990-2020 (% of total) 60
Table: Ukraine's Key Population Ratios, 1990-2020 61
Table: Ukraine's Rural And Urban Population, 1990-2020 61

Methodology 62

Industry Forecast Methodology 62

Sources 63

Risk/Reward Ratings Methodology 63
Table: Real Estate Risk/Reward Ratings Indicators 65
Table: Weighting Of Indicators 66

Note: Product cover images may vary from those shown
3 of 4

Aerobud
Kyivmiskbud Holdings
Seven Hills LLC
TMM
XXI Century Investments
Dragon UPD

Note: Product cover images may vary from those shown
4 of 4
Note: Product cover images may vary from those shown

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