Real estate markets, Ukraine 2017
Ukraine is the one of the biggest markets in Europe which totals 42.5 million consumers. After deep fall in 2014-2015, Ukrainian economy starts the gradual recovery. In 2016 it was one of the fastest growing economies – GDP growth is 2.5% compared to EU countries (28 countries) GDP growth 1.9%. It has positively influenced consumers’ demand and sentiments: 58.5 points as for July 2017 (+16.8% annually). Despite moderate decrease compared to June 2017, it is one of the highest levels during the last two years. Along with that, retail turnover has increased by 4% in 2016, and by 8% during 7 month of 2017 compared to the same period of 2016. The average salary in the country has grown by more than 22% this year.
As for today in Kyiv there are 1 super regional, 5 regional, 25 community, 17 neighborhood centers, 15 specialized shopping centers and 26 standalone hypermarkets. According to ICSC classification, excluding shops with area less than 5 th. sq.m. and hypermarkets, the total area of retail objects in Kyiv is 1 307 th. sq.m. This volume refers to the saturation level 449 sq.m. per 1000 habitants, which is beyond other EastEuropean capitals. Holosiivsky and Obolonsky districts are the best ensured with retail space. Total market supply in 2016 has decreased with the sale and closing of Alta Center and has increased given to commissioning of new retail objects: super regional center ‘Lavina mall’ (GLA=127 000 sq.m.), community center ‘New Way’ (GLA = 17 000 sq.m.), Central Department Store (TSUM, GLA=23 500 sq.m.), neighborhood center ‘Ornament’ (GLA = 4000 sq.m.), several standalone supermarkets with the checkout areas – three objects ‘Novus’ (GLA = 3, 1.6, 2 th. sq.m.) and ‘Megamarket’ (GLA 10 th. sq.m.). During the first half of 2017 the community shopping center Academ City (GLA 8000 sq.m.) has been delivered to the market