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Ukrainian Retail Well-Being Index climbs to 28.3 in Sept 2022, shows 70% market recovery – UCSC
KYIV. Nov 7 (Interfax-Ukraine) – The Retail Well-Being Index (RWBI), after a sharp drop to 16.7 in February and March 2022, recovered to 28.3 in September 2022, the Ukrainian Council of Shopping Centers (UCSC) told Interfax-Ukraine.
The Retail Well-Being Index shows the dynamics of the shopping center. When calculating the index, the following aspects are taken into account: shopping center traffic/attendance, people per month; shopping center occupancy, %; the proposed average rental rate for standard vacant lots with an area of 50-250 square meters, the rate per 1 square meter, excluding VAT. The methodology has been tested by the UCSC since August 2021.
According to the UCSC, the pre-war indicator in September last year was 38.7, thus, according to the RWBI indicators, the retail real estate market has already recovered by about 70%.
In general, as of November 1 in Ukraine, out of 326 shopping centers in Ukraine, 241 shopping centers with a rental area of 4.4 million square meters have already resumed work. This figure has slightly increased compared to the beginning of summer, when 71% of retail space was open. Some 10% of retail space (590,000 square meters) remains unused, a significant proportion of which is damaged.
The UCSC reported that since April, when only 102 shopping centers were operating, about 140 objects have resumed their activities. In particular, even some objects that received significant damage, for example, the capital’s Lavina Mall and Retroville, Kharkiv Nikolsky and Dafi, have partially or completely restored work.
In general, as a result of Russian aggression, 27 retail real estate objects with a total area of more than 1 million square meters were damaged.
The largest part of non-operating shopping centers remains in the east of the country. Despite the restoration of the work of one of the largest shopping and entertainment centers Nikolsky, only 29% of retail space operates in the eastern regions, 25% do not work and 46% are located in the occupied territory.
Less than half (48%) of retail space also operates in the south. Here, too, most of the shopping centers still remain in the occupied territory (37%).
In the capital, only 5% of retail space in the shopping center remains closed (such a significant figure is caused by the closure of a large facility, the Ocean Plaza shopping center). In the central regions, 10% of retail space is not working yet. All objects work in the northern and western regions.
According to UCSC analysts, the opening of new shopping centers in Ukraine during the war is also evidence of the gradual market recovery. In 2022, six new shopping centers were opened with a total rental area of 51,000 square meters. At the same time, all new shopping centers are of small format and all of them are located in the western region of the country.
Established in 2020, the UCSC is a non-profit organization that brings together key participants in the retail real estate market: owners and developers of shopping centers, as well as companies involved in the construction and maintenance of shopping malls.
