- According to Wolrd Bank after a two-year recession GDP grew by 2.3% in 2016, 2.5% in 2017 and 2.9% in 2018 as a result of improved investment climate and domestic consumption. Forecasts for the nearest years tells that GDP will slightly decrease by 2.7% in 2019 because of the country’s uncertainties; though GDP will keep growing in the next few years – 3.4% in 2020 and 3.7% in 2021
Ease of Doing Business
- Ukraine is ranked 71 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Ukraine improved to 71 in 2018 from 76 in 2017. Ease of Doing Business in Ukraine averaged 112.36 from 2008 until 2018, reaching an all time high of 152 in 2011 and a record low of 71 in 2018.
Positive Oxford Economics Forecast
- Ukraine’s economy will keep growing by around 3% during 2019-2021 according to Oxford Economics Forecast
Tech and IT Industry Growth
- Ukraine takes 1st position among the lower-middle income countries in the Global Innovation Index 2018.
- Ukraine’s tech and outsourcing sectors, in particular, are seeing robust growth.
International Retailers Expansion
- Over 10 new brands entered the market with own investments – such as H&M, DeFacto, Decathlon, IKEA (in 2019)
Office Sector Keeps Growing in Demand
- According to Cushman and Wakefield the office property market in Kyiv continued to demonstrate positive dynamics during 2017 and 2018 which is driven by relocations and expansions of fast-growing IT companies, as well as companies providing business services (including co-working, which account for 9% of annual take-up), as well as industrial and manufacturing companies (particularly, FMCG).
- Record low level of primary vacancy – 4.9% as of December 2018
- High level of foreign investments in the manufacturing sector because of low labor costs and further integration with the EU
Office take-up by sectors in Kyiv 2018 (%)
The Record Level of Investments in the Property Market Since 2012
- According to Cushman and Wakefield in 2018 the total volume of secondary investment transactions on the commercial property market in Ukraine amounted to around USD 330 million, exceeding the annual figure for 2017 by 2.5 times
Attractive Yields Compared to Western Europe and other CEE Markets
- Since Q2 2018, prime initial yields for commercial space in Kyiv have been at around 10%