Total stock of commercial real estate will rise by 1.5 times by 2020, to 633,000 sq m - expert
KYIV. Dec 5 (Interfax-Ukraine) – The total supply in the commercial real estate market will reach 633,000 square meters by 2020, which is 1.5 times more than now, expert in the field of commercial real estate Ihor Zabolotsky has said.
"At the end of 2018, the vacancy rate dropped to 3.8%. This is an extremely low level not only for Ukraine, but also for the world. In 2017 there were practically no new projects, 8,000 square meters were commissioned. This year the figure is more significant: taking into account those objects that are to open in December 2018, the figure will reach 85,000 square meters. But these are mostly small objects with an area of 10,000-20,000 square meters, and the appearance of each of them could not affect the market as a whole. The total supply over the next two years could exceed 600,000 square meters. The total stock might increase by more than 1.5 times," Zabolotsky said at a press conference in the Interfax-Ukraine agency.
In particular, he noted that the opening of the River Mall shopping center is scheduled for the second quarter of 2019 and the Retroville trade center for the third quarter of 2019, as well as the opening of the Blockbuster shopping center was postponed to February 2019.
According to the expert, the success of the projects will be determined not by the level of rental rates, but by the purchasing capacity of the population in 2019.