The Ukrainian retail real estate market has been significantly influenced by the full-scale war for almost four years, which defines the key trends in the industry’s development. The operation of shopping centers continues to be affected by air alerts, Russian shelling, destruction of facilities, power supply disruptions due to enemy attacks, as well as population migration and labor shortages. However, despite these challenges, the market demonstrates resilience and even growth: shopping centers are not only being rebuilt but are also becoming more energy-independent.
This is reported by Finway
The Rise of Small Shopping Centers as a New Trend
Experts note that the main trend for 2024–2025 is the active development of small retail real estate formats. Of nearly 70 new shopping centers that have already opened or are preparing to open in the next two years, 54 are small-type shopping centers, including retail parks and convenience centers. The average area of such shopping centers is about 9,000 square meters.
Safe Regions and Investment Strategies
Investors prefer to build small facilities in regions located far from combat zones. More than half of the new retail spaces currently under development are located in western Ukraine. This approach helps reduce the risks of damage or destruction of properties. For greater security, investors are willing to wait up to 10 years for a return on their investments, betting on smaller investments and the stability of less affected regions.
“For almost the last four years, the full-scale war has been the main factor influencing the development of the Ukrainian retail real estate market. The industry is affected by air alerts, Russian shelling, the destruction of shopping centers, energy supply issues due to enemy attacks, population migration, and labor shortages.”