A downward trend in the rent rates of high-quality offices in Kyiv seen in the first quarter of 2014 due to the expected low demand will continue in the medium term outlook, analysts from Jones Lang LaSalle (JLL) have said.

They said that in January-March 2014, net absorption on the Kyiv's office space market came to 14,000 square meters, while the volume of new deals was rather small, totaling 6,100 square meters, which is evidence of low activity of leasers.

"As consequence, we see a slight fall in rent rates – the highest rate fell to $34 per square meter a month. In the medium term outlook one could expect the further reduction in the rates, as developers will have to give discounts to fill vacant space," Head of Tenant Representation at Jones Lang LaSalle in Ukraine Oleksandra Hlobina said.

JLL said that in January-March 2013, 13,000 square meters of offices was leased in Kyiv.

Hlobina found it difficult to predict the continuation of low demand and activity of leasers on the office property market in Kyiv due to the strong dependency of the market on the political situation in the country.

"It's likely that evident reanimation will be seen by the fourth quarter of 2014," she said.

Jones Lang LaSalle is a financial and professional services firm specializing in real estate services and investment management. It has over 200 representative offices in more than 1,000 locations in 70 countries. Its turnover in 2012 was $3.9 billion, $3.6 billion in 2011 and $2.9 billion in 2010.

Its portfolio includes around 242 million square meters of property all over the world.

The LaSalle Investment Management division manages assets worth over $46.7 billion.

In Russia and the CIS, Jones Lang LaSalle has offices in Moscow, St. Petersburg, Kyiv and Almaty.