Kyiv’s office market posted moderate growth in 2025 despite continued uncertainty. Annual gross absorption rose by 26% y/y to around 160,000 sqm, with total leasing activity reaching 165,000 sqm. However, market experts note that demand remained uneven and was only partly driven by organic business expansion, the URE Club writes in an article for Property Forum.
Around 40% of take-up resulted from forced relocations from buildings damaged by rocket attacks, underlining the non-systemic nature of recovery. At the same time, some tenants upgraded to higher-quality premises, taking advantage of competitive lease terms. Demand focused primarily on ready-to-move-in offices of 300–600 sqm in quality business centres.
IT and telecommunications led leasing activity with a 26% share, followed by banking and finance, industry and energy, flexible office operators, and the public sector. The share of defence-related tenants continued to grow, although many opted to purchase rather than lease space due to heightened security risks. Experts also report rising interest from international companies, state-owned enterprises and businesses linked to government contracts, particularly in the defence and manufacturing sectors.
Rents edge up as supply tightens
Rental dynamics varied by segment. While headline rates in Class A remained broadly stable, Classes B and C recorded moderate growth. Market participants report effective rent increases in the range of 5–20%, alongside reduced landlord flexibility and smaller negotiation discounts.
Prime effective rents ranged between $14–18 per sqm per month for shell-and-core offices and $19–25 per sqm for fitted space. Asking rents for Class A properties stood between $16–27 per sqm, depending on location, condition and security factors.
Rental growth was mainly driven by shrinking supply. No new business centres were delivered in 2025, while around 70,000 sqm (3.4% of competitive stock) was damaged or destroyed. Total supply fell to approximately 2.1 million sqm. Vacancy rates at the beginning of 2026 stood at 28.2% in Class A, 20.3% in Class B and 14.0% in Class C, with higher vacancy in the top segment linked to space optimisation.
Security and efficiency dominate tenant priorities
Security remains the decisive factor in leasing decisions, alongside energy autonomy, shelter access and office readiness. Demand continues to favour fitted premises, although a growing share of tenants is willing to invest in fit-out in exchange for longer leases of 3–5 years. Cost optimisation is also shaping behaviour, with companies downsizing, relocating outside central areas or consolidating into owned premises.
Outlook for 2026
Experts expect cautious but stable activity in 2026, with relocations, renewals and selective expansions driving demand. A limited pipeline — around 27,000 sqm potentially entering the market — and ongoing security risks may constrain supply further, putting downward pressure on vacancy in selected segments.
However, macroeconomic volatility and geopolitical uncertainty are likely to keep occupier decisions pragmatic and cost-focused, preventing a rapid absorption of existing stock.
