DTZ

31 May, 2010

• While the economy of Ukraine was hard hit by the global financial turmoil, combined with political instability in the run-up to the presidential elections, early signs of stabilisation were witnessed in the first quarter of 2010 (Fig. 1).
• Despite the first signs of increase in occupier demand, the office property market in Kyiv was still determined as a tenant’s market as opposed to the landlord’s market that prevailed during 2004-Q3 2008.
• In the first quarter of 2010, DTZ witnessed a noticeable improvement in general dynamics on the demand side of the retail market across Ukraine, with retailers increasingly seeking opportunities to expand, whilst the lack of critical mass of high quality retail properties in the country remains a major obstacle.
• Though the first quarter of 2010 did not bring any significant changes on the logistics property market in the Greater Kyiv area, activity of ‘would-be’ occupiers in the sector increased compared to 2009.
• Since early 2010, DTZ has seen significant improvement in investor sentiment. As a result, in the first quarter of 2010, the volume of investments into the commercial property market in Ukraine exceeded the volume of investments recorded during the whole of 2009.