There is lack of office space on the market. For example, for the office 5,000 sq m in central business district, considering relocation during half a year, the supply is limited to several office buildings. The demand remains at the level of 2018. There is a postponed demand, when companies are interested in relocation, but still looking for new spaces. During 1st quarter of 2019, no office buildings were delivered to the market, rental rates remained at the level of 2018 and vacancy continues to decline gradually. If political and economic recovery continues and UAH exchange rate remains stable, rental rates in next 3-6 months are likely to remain unchanged. According to the developers, new supply of office space is expected to grow on ~ 74,000 sq m. It is the highest rate for the last 5 years. There is a tendency to sign letter of intents for leasing premises in office buildings under construction. As a rule, some of the announced launches will be postponed, so the volume of new supply in 2019 will not fully satisfy existing demand.
*Excluding VAT and operating expenses