Despite the pandemic, 16 new business centers are planned to be built in Kyiv by the end of next year. Rent prices dropped at the beginning of the pandemic, but that is now changing again. See a rough estimate of prices below.
Ukrainenu previously wrote about how the pandemic made the average rent prices in Kyiv drop by around 20 percent due to lower demand. More people decided to work from home and left offices around the country nearly empty, but that is changing. As the pandemic weakens, more and more people are expected to go back to the officers.
The media site open4business wrote that 16 new business centers, spanning a total area of 376,000 square meters, will open in Kyiv by the end of next year.
“The collapse of the offices that scared everyone at the start of the pandemic did not take place. According to a study conducted by CBRE in 2020, 73 percent of those surveyed want to return to the office and have a hybrid work format,” said Managing Partner of CBRE Ukraine Radomyr Tsurkan as a reaction to the many new business centers.
“Now the vacancy rate is about 14 percent, this is a fairly healthy indicator. The rates have dropped slightly – by 10 percent compared to 2020 and total 25 dollars per square meters a month,” said Tsurkan.
How much does an office cost?
CBRE Ukraine estimates that a total office area of 207,000 square meters will be ready in 2021, and another 169,000 in 2022. But how much do such offices cost? The organization Ukrainetech published an estimate about the costs of renting an office space in downtown Kyiv back in 2019. Rents are said to be around 10 to 20 percent lower now, but it still gives an idea about how much it costs to get an office in the Ukrainian capital.
|Staff size||5-10 persons||10-15 persons||15-25 persons|
|Class B centrally located office (non-furnished)|
|Monthly Rent in USD$||$2000||$3200||$5500|
|Monthly Utilities (including common areas)||$300||$500||$700|
|Class A centrally located office (non-furnished)|
|Monthly Rent in USD$||$3300||$5000||$8500|
|Monthly Utilities (including common areas)||$700||$1200||$1500|
|Twice a week cleaning||$300||$450||$500|
According to Tsurkan, the new office spaces now built are more innovative.
“Now everyone understands: a large business center must have a coworking space. Another innovation that we will see soon is a mandatory area for conversations, meetings with visitors on the ground floor and or in the office itself. This is a safety requirement, including epidemiological,” Tsurkan said.