International companies from the defense industry are becoming the driver of office market development instead of IT, the UTG company press service reported.The study based on the results of Q3 2025 states that the number of international companies and their representative offices represented in Ukraine continues to decline in dynamics. Currently, there are 616 of them compared to 627 in the pre-war 2021.

“The armed aggression of the Russian Federation in 2014-2015 led to the beginning of a mass outflow of Russian companies, the toxicity of cooperation with them and their final closure in 2022-2023, despite attempts to re-register as Ukrainian / European legal entities,” the study states.

At the same time, the share of IT in GDP (5.42% in 2022 and 3.42% in 2024) and exports of IT services ($7.52 billion in 2022 and $6.38 billion in 2024) are decreasing. At the same time, Ukraine has become a real testing ground for know-how and advanced modern weapons systems, and global companies – giants from the defense industry are launching or negotiating the opening of joint production facilities, factories, research centers, administrative and office representative offices in the country. In particular, Germany (Rheinmetall, KMW companies), Turkey (Baykar), Norway (Kongsberg), Latvia (Atlas Aerospace), Great Britain (BAE Systems), the USA (Northrop Grumman), Denmark, France, Italy, Spain, Poland and many others are actively involved in this process, opening local offices and creating new jobs.

“The international community’s loyalty to Ukraine remains, and possible accession to NATO and the EU is likely to lead to the emergence and development of new international organizations, enterprises, and brands in the country, especially those that have closed and completely left the territory of Russia,” the study says.

As for development activity, it is expected that this year will show an increase in new supply – 63 thousand sq. m in 2025 against 26 thousand sq. m in 2024. The plans for 2026 include 234 thousand sq. m of new supply, and 490 thousand sq. m are announced for 2027. So far, the market is showing a cautious positive trend, with a decrease in vacancy in class B from 21.8% in 2024 to 20.5% in the first half of 2025 and in class C, respectively, from 14.8% to 14.2%. At the same time, there is an increase in rental rates for this period – in class B from $11.5 to $11.9 per 1 sq. m (excluding VAT, OPEX, KP, BOMA) and from $9.1 to $9.8 in class C. The situation in class A demonstrates stability, vacancy at 28.2% (in 2024 it was 28.1%), rates have decreased slightly – from $17.5 to $17.2 per 1 sq. m (excluding VAT, OPEX, KP, BOMA).