Snapshot: Warehousing and logistics property market overview, the Greater Kyiv area, Q2 2019
Development dynamics in the warehousing and logistics property sector in the Greater Kyiv area remain low, though gradually improving compared to 2018. As such, in H1 2019 new supply in the sector reached around 16,800 sq m, all delivered in Q1 2019, which by 44% exceeded total semi-annual supply in 2018.
Weak development activity combined with strengthening occupier demand continues to keep vacancy at low levels with upward pressure on effective occupational costs in the most sought-after properties. At the end of Q2 2019, primary vacancy further decreased to 1.9%, whilst asking monthly base rents for prime warehousing space increased and were in the range of USD 4-5 per sq m.