In Kyiv, during the first half of 2025, the volume of gross absorption of office space reached 82,000 square meters, which is 16% more than in the same period last year. This increase indicates a recovery of business activity in the capital’s commercial real estate market.
This is reported by Finway
Key factors driving demand for offices
About 30% of new lease agreements are related to the forced relocation of companies from buildings that have been damaged. This underscores the instability of the market while demonstrating the flexibility of businesses in response to challenges. Among the main drivers of demand are companies in the IT and telecommunications sectors. Significant contributions to the structure of agreements also come from public sector organizations, non-governmental organizations, and industrial-energy enterprises. The most common type of agreements remains relocations—both forced and planned—which account for about 40% of all transactions.
According to research, about 30% of this demand is related to the forced relocation of companies from damaged buildings, highlighting the destabilizing nature of the market.
Trends in the reduction and expansion of office space
The share of agreements related to the expansion of space indicates a gradual return of businesses to optimistic forecasts regarding further development. Many companies, implementing a hybrid work format where only 30-40% of staff are in the office at the same time, are reducing their space to half of pre-war levels. This allows them to move to higher-class offices without increasing rental costs.
Strategic expansion observed in the IT, manufacturing, pharmaceuticals, and medical sectors indicates long-term positive expectations for growth and stabilization of the economic situation in Kyiv and the country as a whole.