Recent Posts
- Ukraine recovery should be based on development of territorial communities, innovations, involvement of professional domestic community – results of ESUR forum 29.06.2023
- Ukraine repatriates five more seriously wounded Russian POWs 10.04.2023
- Rada intends to include history of Ukraine, foreign language in final certification for general secondary education 10.04.2023
- Rada terminates protocol on joint anti-terrorist measures in CIS territories for Ukraine 10.04.2023
- 100 Ukrainians, incl defenders of Mariupol, returned according to swap procedure – Yermak 10.04.2023
Kyiv ranks third in terms of growth in office real estate in Central and Eastern Europe
KYIV. Sept 27 (Interfax-Ukraine) – Kyiv ranked third in terms of growth and sixth in terms of volume of office real estate in Central and Eastern Europe (CEE), according to the ExCEEding Borders Report 2021, prepared by Colliers.
ExCEEding Borders Report 2021 analyzed the situation in 15 office markets in the CEE region – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Montenegro, Poland, Romania, Slovakia, Slovenia and Ukraine.
According to the report, despite the pandemic and its consequences, the office real estate market in the CEE region continues to develop rapidly.
The largest offer of modern office space is presented in Warsaw (about 6.1 million square meters), Budapest (about 4 million square meters) and Prague (3.7 million square meters). The markets where the supply exceeded a million square meters include: Bucharest (3 million sq m), Sofia (2.5 million sq m), Kyiv (2.2 million sq m), Bratislava (2 million sq m), Zagreb (1.5 million sq m), Tallinn (1.1 million sq m) and Ljubljana (1 million sq m).
In the first half of 2021, the largest increase in new supply was noted in Warsaw, where developers commissioned 10 office projects with a total area of 226,300 sq m. The second place was taken by Sofia (115,000 square meters), followed by Kyiv (71,000 square meters). At the same time, the capital of Ukraine took first place in terms of the volume of promising new square meters announced by developers for commissioning in the next few years – 448,000 square meters. In the second place in terms of promising supply is Budapest with 350,000 sq m, on the third – Warsaw with 329,000 sq m.
The leaders in the absorption of office space are Poland (249,300 sq m), the Czech Republic (183,300 sq m) and Hungary (172,900 sq m). Ukraine ranked seventh among 15 countries of the CEE region with an indicator of 60,000 square meters for the first half of 2021.
As noted in the ExCEEding Borders Report 2021, a significant share of the demand for office real estate in the CEE markets is formed by IT and business services sectors. According to the results of the study, Poland, Romania and Ukraine entered the top three countries for the provision of services in the IT and business sector. By the end of the first half of 2021, there were 1,602 international and local business service centers in the IT sector in Poland, with a large share of representative offices in Krakow, Warsaw and Wroclaw. Romania ranks second with a total of 215 centers, Ukraine ranks third, here there are more than 150 centers of business services in the cities with the population of over one million as Kyiv, Kharkiv, Odesa.
Now the largest number of employees in the field of business services is observed in Poland (355,300), Romania (about 200,000) and Ukraine (190,000).
As noted in the report, now Ukraine demonstrates the growth rate of the IT services market at the level of 20-25% annually and by 2025 the volume of the workforce in IT will reach 242,000 specialists.
Colliers International is a leading diversified professional services company in the commercial real estate industry. The company’s offices are represented in 67 countries of the world.
