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Western Regions Lead the Way in Implementing New Retail Real Estate Formats – UTG

The highest level of requests for the redesign of retail properties is being recorded in the central regions, while the western part of the country is experiencing a boom in new formats, UTG company Director Evgeniya Loktionova told the Interfax-Ukraine news agency. “Demand for the redesign and creation of new real estate formats in Ukraine as of 2026 is extremely high and is currently in the phase of active practical implementation. Internal migration, changes in consumer behavior, and high safety requirements have forced developers to radically rethink their approaches to commercial spaces,” Loktionova said.

Requests for redesign and the actual implementation of such projects are unevenly distributed across regions due to security concerns and the concentration of capital.

According to UTG, the highest number of requests for redesign comes from the central regions and the capital. Owners of properties in the capital most often commission audits and the development of redesign concepts, as competition in Kyiv is fierce and tenant requirements are the most stringent.

“We are seeing that old or inefficient SECs (especially those larger than 50,000 sq. m) are being actively repurposed. Large entertainment areas and empty shopping arcades are being replaced by mixed-use spaces that include coworking spaces, medical centers, offices, and sports hubs,” Loktionova said.

According to her, instead of traditional mega-malls, the market is now focusing on retail parks (compact, single-story complexes spanning 10,000–20,000 sq. m with their own parking) and local/micro-shopping centers in residential areas (the “shopping close to home” concept).

Western regions (Lviv, Uzhhorod, Mukachevo, Ivano-Frankivsk, Chernivtsi) are generating a steady stream of requests to create new formats “from scratch” to meet the needs of relocated businesses and new residents, and are de facto the absolute leaders in the implementation of such projects. According to the expert, such projects are currently demonstrating a rapid return on investment (within a few years).

As for the southern and eastern regions (Odesa, Dnipro, Kharkiv, Zaporizhzhia), demand is growing there, but the requests are of a defensive and adaptive nature. “Businesses are looking for solutions to restart damaged facilities or create underground or protected retail areas,” says Loktionova.

At the same time, developers in all regions are placing a special emphasis on self-sufficiency, safety, and inclusivity. A mandatory requirement for any renovated or new development is the presence of fully equipped, certified shelters and self-sufficient energy and water supply systems.