Growth in supply of retail property leasing in Kyiv could be 23% in 2013, say experts
Kyiv, November 21 (Interfax-Ukraine) – If all declared retail property construction projects in Kyiv are commissioned, the lettable area on the capital's retail property market in 2013 will expand by some 23% compared with 2012, to some 950,000 square meters, Head of Strategic Consulting Department of the UTG Viktor Oborsky said at a press conference at Interfax-Ukraine on Wednesday.
"The general figure for the realization in 2013 should be nearly 200,000 square meters, which in absolute figures will be around 950,000 square meters of lettable area in the capital, or a rise of 23% compared with the commissioning last year, which is a lot," he said.
Five shopping centers with a combined gross lettable area of 92,530 square meters was opened in Kyiv in January-September 2013. It is declared that 114,500 square meters of retail property will be commissioned in another four centers in the fourth quarter of 2013, he added.
He said that the rent level on the retail property market in Kyiv is stable at $70 per square meter a month, not taking into account value added tax and operation costs. There are no preconditions for their growth at the end of 2013, Oborsky said.
He also said that in 2014 new supply of lettable area for retail property could be around 300,000 square meters in five facilities declared for commissioning in Kyiv.
"For the next two or three years we expect that new supply of lettable area will be one million square meters in 25 facilities," Oborsky said. He said that the doubling of supply would result in the saturation of lettable segment of the retail property market.
The Ukrainian Trade Guild was set up in 2001. It specializes in providing comprehensive assistance to development projects.
Over the 12 years of its operation, 97 real estate facilities have been opened with the participation of the UTG, including the Ocean Plaza shopping mall (Kyiv), the Meganom shopping mall (Simferopol), the French Boulevard shopping mall (Kharkiv) and Global.UA (Zhytomyr).
The UTG is selecting leasers for facilities with a total lettable area of over 500,000 square meters.
