Ukraine remains a buyers market for commercial property investors | 29 November 2012
Ukraine’s commercial property market remains a safe haven for buyers across all sectors, according to local realtor DTZ.
A report from the property services company has indicated that prime yields should remain stable at 11 per cent throughout next year and even beyond. This is slightly less than in 2011 but still a bigger return than almost anywhere in Europe.
According to kyivpost.com, logistics properties are currently providing the best deals for investors, averaging around 15 per cent in the capital.
Office rents have softened slightly due to a huge supply of new properties hitting the market this year. More than 103,000 sq m worth of office space were built in the country this year, almost doubling the total amount. A similar growth of retail space is expected in the near future.
Predicting the future of the Ukrainian commercial property market, a DTZ spokesperson told pie-mag.com they expected further compression of yields in 2013.
They explained that yields were “irrationally low” before the Eurozone crisis, despite “clearly unsustainable” rents in some areas of the country.
Now that this previously volatile market appears to have calmed, investors should be able to benefit from a country which remains largely under-supplied, they concluded.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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