As a result of the full-scale war in Ukraine, over 1-1.5 million sq. m of commercial real estate has been destroyed or damaged. The eastern and southern regions, as well as the Kyiv region, suffered the greatest losses. At the same time, warehouse real estate remains the most scarce segment of the commercial market: total losses of warehouse space during the full-scale war are estimated at over 950,000 sq. m According to estimates, the total financial losses of the logistics sector alone exceeded $1.5 billion. This was reported to D by UTG company Director Evgenia Loktionova in response to a request.<\/p>\n
Most retail real estate lost in the east and south<\/p>\n
The largest amount of physical destruction of retail space fell on the eastern and southern regions of Ukraine. Among the cities that suffered the greatest losses were Mariupol, Kharkiv, Kherson, Zaporizhzhia and Mykolaiv.<\/p>\n
The Kharkiv region, Zaporizhzhia, Mykolaiv and Donetsk regions suffered large-scale destruction due to constant shelling and occupation of certain territories.<\/p>\n
In the Kyiv region, significant damage to retail real estate occurred in the first months of the full-scale invasion. Some shopping centers in Kyiv and the region were destroyed, but most of the damaged facilities were later restored.<\/p>\n
The western regions \u2013 Lviv, Ternopil, Zakarpattia and Ivano-Frankivsk \u2013 suffered minimal destruction. At the same time, they received the status of new business hubs, where part of the business and logistics operations moved after the start of the full-scale war.<\/p>\n
Kyiv region \u2013 leader in losses of warehouse space<\/p>\n
The largest volume of destroyed and damaged warehouse space fell on the Kyiv region. In the first months of the war, about 650 thousand sq. m of high-quality warehouses of classes A and B were destroyed or critically damaged in the Bucha, Brovary and Vyshgorod districts.<\/p>\n
Another 300 thousand sq. m of warehouse space was lost in the eastern and southern regions, in particular in the Kharkiv, Odesa, Mykolaiv and Zaporizhzhia regions.<\/p>\n
The reason was missile strikes on the logistics hubs of large retailers and postal operators. Among the damaged and destroyed facilities are the warehouse infrastructure of Nova Poshta, Rozetka and other companies.<\/p>\n
In general, the loss of warehouse space for the entire period of the full-scale war is estimated at over 950 thousand sq. m, which is about 20% of the country\u2019s total pre-war fund.<\/p>\n
2022-2023: the market faced a deficit<\/p>\n
The first two years of the full-scale war were a period of a sharp reduction in the supply of warehouse real estate.<\/p>\n
The construction of new facilities was stopped or significantly slowed down due to hostilities, the humanitarian crisis and uncertainty. At the same time, retailers were forced to move product residues to the western regions of Ukraine.<\/p>\n
The problem was that in the west of the country before the war there was not a sufficient amount of ready-made warehouse infrastructure capable of quickly accepting such volumes of goods and logistics operations.<\/p>\n
As a result, the demand for warehouse space significantly exceeded the available supply.<\/p>\n
2024-2025: the beginning of active recovery<\/p>\n
In 2024-2025, the situation began to change. The market intensified the construction of new warehouse facilities and the restoration of damaged infrastructure.<\/p>\n
2025 became a record year for the introduction of new warehouse real estate for the entire period of the full-scale war. The market was replenished with approximately 216 thousand sq. m of new space.<\/p>\n
The bulk of new facilities appeared in the Kyiv region and Lviv region. Among them are large-scale logistics complexes of the Aurora network and new lines of the M10 industrial parks.<\/p>\n
Thus, developers began to gradually respond to the structural shortage of warehouse real estate formed after 2022.<\/p>\n
2026: shortage remains the main problem<\/p>\n
As of August 2026, warehouse real estate remains the most scarce, stable and investment-attractive segment of commercial real estate in Ukraine.<\/p>\n
According to UTG experts, new destructions in 2026 are estimated to be isolated. At the same time, this does not solve the problem of shortage: demand from e-commerce, food retail and military logistics is significantly ahead of supply.<\/p>\n
As a result, warehouse real estate remains one of the key segments for investment. The main demand is concentrated in regions with developed transport infrastructure and the highest concentration of business.<\/p>\n
At the same time, the war changed the geography of commercial real estate in Ukraine. If the eastern and southern regions became the main areas of physical losses, then the western regions acquired a new role as business and logistics hubs. The Kyiv region, despite the large-scale destruction, remains one of the main centers of restoration and new warehouse construction.<\/p>\n
As a reminder, the Ministry of Economy of Ukraine is preparing large-scale changes to the government program to support businesses that have suffered losses or are under threat due to military operations. Compensation for bonuses will be increased to UAH 5 million, and protection will be extended to agricultural machinery and rented warehouses.<\/p>\n
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