The cost of renting office spaces in Kyiv has stabilized for the first time since the beginning of the full-scale war, following a prolonged period of decline. According to analysts, in July 2025, the rental price per square meter in the capital’s business centers was: $17.2 for Class A, $11.9 for Class B, and $9.8 for Class C (excluding VAT and additional costs). At the same time, the average vacancy rate remained quite high: 28.2% for Class A, 20.5% for Class B, and 14.2% for Class C.
This is reported by Finway
Increased Demand Driven by the Defense Sector
The key driver behind the stabilization of the office real estate market has been the heightened interest in rentals from foreign weapon manufacturers and defense industry companies. Ukraine has become a platform for implementing innovative technologies and testing modern weapon systems, which has encouraged leading international companies to open their offices, manufacturing facilities, and research centers in the country.
Foreign Companies Intensify Presence in Kyiv
Among the global players that are already operating or negotiating entry into the Ukrainian market are companies such as German Rheinmetall and KMW, Turkish Baykar, Norwegian Kongsberg, Latvian Atlas Aerospace, British BAE Systems, American Northrop Grumman, as well as companies from France, Denmark, Italy, Spain, Poland, and other countries.
“Ukraine has become a true testing ground for innovative know-how and advanced modern weapon systems, while global defense industry giants are launching or negotiating the establishment of joint manufacturing facilities, factories, research centers, and administrative-office representations in the country.”
Despite the overall decrease in the number of international representations in Ukraine, the demand from defense companies has become a decisive factor for stabilizing office real estate prices in Kyiv.