You're reading: Prices of offices in Kyiv 25% lower than housing prices

The average price of offices in Kyiv today is around $1,591 per square meter, which is 25% lower than the average housing price, Chairman of the Committee for Analysis at the Union of Realtors of Ukraine, Vsevolod Zhoholev, has said.

"There are signals that we’re passing through a certain low this quarter for offices. Today, the average indicator for offices in Kyiv is 25% lower than housing prices. This has not been seen in the last ten years," Zhoholev said at a press conference at Interfax-Ukraine on April 3.

He said that the vacancy rate in the retail property segment is growing.

"In 2010 and early 2011 the situation improved and the vacancy rate did not exceed 1.5-2%, while today this is 4.5-5%, and in offices the vacancy rate totals 10%," he said.

"We think that retail property has not hit the bottom. We’re somewhere in the middle now, and it’s early to speak about any bottoming out," he added.

According to the Union of Realtors of Ukraine and Kyiv, the average price of offices in Kyiv in the first quarter of 2012 grew by 2.89%, while the price of retail space fell by 1.92%.

"Indicators show ambiguous multidirectional fluctuations. In March, a sharp fall in the average price indicator was seen, and it reached a record over the period of crisis monitoring. However, later the indicator jumped, which is evidence of strong resistance to a further price fall. This pace is typical for a situation in which the most attractive offers find buyers, preventing price indicators from undergoing a systemic fall," the experts said.

They said that the average rent rates for offices in Kyiv in the first quarter of 2012 grew by 3.7%, to $15.59 as of March 30, 2012, while retail rent rates fell by 10.2%, to $23.71 per square meter.