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Kyiv experiences another boom in rental market. Due to "wild" tariffs, offices are moving to the housing sector

Offices in Kyiv are moving to the housing sector due to high heating tariffs. Photo: media.az

Offices in Kyiv are moving to the housing sector due to high heating tariffs. Photo: media.az

In Kyiv, the rental market has revived significantly due to the return of small offices to the housing sector.

In Ukraine, since November, the heating tariff for legal entities for non-housing stock has risen, where a coefficient of 2.1 is used due to a rise in gas prices. Figures that appeared in payment documents for heating in business centers are many times higher than last year.

As a result, small and mid-sized offices are unable to resist pressure from new heating tariffs and, in most cases, leave office centers, Iryna Lukhanina, the real estate market expert, comments to The Page.

Quote"The price range for heating of, for example, an office of 80 meters is 10,000 UAH in November, and in December—almost 13,000 UAH. For comparison: the office space itself, not in the center, costs 14,000 UAH. That is, 90-95% of the rent is additionally borne by tenants," the specialist explains.

Rental prices in "residential" offices

The companies are trying to solve the situation in two ways. Either by changing contractual relations with an owner: they agree on a common payment of the tariff, more often on a parity basis—50/50. Or people move to residential premises equipped for offices, where the rent bar has hardly risen, the expert stresses.

In this regard, the market is experiencing a boom in office space. The potential tenants search proposals with the following parameters most frequently:

  • premises from 50 to 80 sq. m;
  • the 1st and 2nd floors of modern houses;
  • apartments with "office" interior;
  • apartments in new buildings or houses commissioned in recent years
Quote"A modern office will not move to an ordinary residential apartment, where the furniture was simply taken out. Appropriate interior is needed: at least white or pastel color of the walls, light floor: parquet or laminate. Such premises find their client on the very first day they were posted," Lukhanina explains.

The rental rates average from $15 to $20 per sq. m. in residential premises.

Traditionally, the following districts are most in demand: Pecherskyi (center), Shevchenkivskyi (center), and Holosiivskyi (center), the expert says.

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