Kyiv’s office market in 2025 demonstrated positive dynamics of key indicators against the backdrop of ongoing uncertainty. The volume of annual gross absorption increased by 26% compared to the previous year and amounted to about 160,000 sq. m, and total rental activity reached 165,000 sq. m. However, in comments for Property Times, experts emphasize: demand remained heterogeneous and only partially confirmed the organic development of the business.

Forced relocations as the main driver of activity

According to EXPANDIA analysts, about 40% of gross absorption fell on forced relocations from objects damaged by missile strikes. “This emphasizes the unbalanced nature of market activity and is not an indicator of the return of organic market development trends,” the company notes.

At the same time, some tenants moved to better quality properties, taking advantage of attractive lease terms, and some companies carried out selective expansion. Rental demand remained focused on ready-to-move-in offices in quality business centers with an area of ​​​​300 to 600 sq. m.

Who rented offices

According to data provided by EXPANDIA analysts, the IT and telecommunications sector retained its leading position with a share of 26% in the total gross take-up and the largest number of deals — 35. It was followed by banks and financial institutions (13%), the manufacturing, industry and energy sector (11%), co-working and flexible offices (8%), and the public sector and NGOs (7%).

The share of military tenants in the demand structure continued to grow. However, as EXPANDIA notes, more stable and long-term demand from such companies was directed mainly towards the purchase of real estate, rather than leasing – due to increased security risks for the segment.

Levon Papoyan, Managing Director, Partner at SNP Partners Ukraine, notes the growth in demand from international companies and organizations, Ukrainian state-owned companies, as well as the private sector associated with government orders.

Kostyantyn Oliynyk, Head of the Strategic Consulting Department at UTG company, draws attention to a new trend: “Today, Ukraine has turned into a real testing ground for know-how and advanced weapons systems, and global giants in the defense industry are launching or negotiating the opening of joint production facilities, factories, research centers, administrative and office agencies in the country.” Among the countries whose companies are actively involved in this process, he names Germany, Turkey, Norway, Latvia, Great Britain, the USA, Denmark, France, Italy, Spain and Poland.

Rental rates: growth by 5–20%

Rental rates in 2025 demonstrated multidirectional dynamics depending on the class of objects. According to UTG, as of January 2026, the rental cost per square meter of premises (excluding VAT, OPEX, utility bills and BOMA) in class A was $17.4 — a decrease of 0.6% per year. In contrast, in class B the rate was $12.0 (+4.3% per year), and in class C — $10.1 (+11.0%).

Levon Papoyan notes a more significant increase in rates — from 5% to 20%. “In most business centers, the rates declared to the market remained at the same level or increased by 5%. At the same time, the flexibility of landlords in negotiations and the size of the discount they are willing to agree on from the declared rate have significantly decreased,” the expert explains.

According to EXPANDIA, the effective prime rate for offices without renovation fluctuated within $14–18 per sq. m per month, while rates for premises with completed renovation remained stable — $19–25 per sq. m per month. The requested rental rates in class A facilities were $16–27 per sq. m per month. The gap between the lower and upper limits depended on the condition of the finishing, location of the facility, occupancy level and security risks.

The main drivers of the increase in rates were the withdrawal of some office buildings from the market due to air attacks, a decrease in supply and the migration of tenants to safer locations with completed offices. “The higher the demand with a limited supply of ready-made offices, the more often we see an increase in achievable rates,” summarizes Levon Papoyan.

Supply Reduction

No new business center entered the Kyiv market in 2025. Instead, about 70,000 sq. m of office space was partially damaged or destroyed as a result of missile strikes — this is 3.4% of the competitive office supply. The total supply volume decreased to approximately 2.10 million sq. m, according to EXPANDIA analysts.

“This is a rare case of negative supply reduction caused by physical losses of infrastructure, which highlighted the vulnerability of real estate in conditions of ongoing hostilities,” experts state. Most of the affected buildings suffered partial or significant structural damage, and their restoration is unlikely to occur before the end of the war.

According to UTG, the weighted average vacancy rate in Kyiv business centers at the beginning of 2026 was: class A — 28.2% (increased compared to the previous year), class B — 20.3%, class C — 14.0% (decreased). The increase in vacancy in segment A is explained by the optimization of space by tenants and the revision of presence strategies in offices.

Tenant requirements

The key requirements of tenants in 2025 remained unchanged compared to 2024, but increased in intensity. Levon Papoyan highlights three main trends:

Security: the location of the facility and the availability of shelter have become critical factors in the choice.

Comfort and autonomy: the presence of generators in business centers for the effective functioning of building systems and office premises, water tanks in case of centralized water supply outages, constant heating, minimal comfort in the shelter area, especially in winter (heat sources, chairs, Internet).

Readiness of premises: demand focused on offices ready for entry or offices without renovation with the landlord’s willingness to perform renovation work “on a turnkey basis”.

At the same time, the expert notes a slight increase in the share of tenants ready to invest in renovations on their own and sign 3-5-year lease agreements instead of standard 1-2-year ones.

Kostyantyn Oliynyk also draws attention to the trend towards savings: tenants optimize the occupied space, consider offers in areas remote from the center, transfer employees from rented premises to their own administrative real estate. The practice of remote work, which began during the coronavirus pandemic, has deepened due to the threat of employee mobilization.

Forecasts for 2026

Experts remain cautiously optimistic. Barring significant macroeconomic or geopolitical changes, tenant behavior in 2026 will remain cautious and focused on efficient use of space.

“Decisions on leasing will be made based on the cost of space, with building quality, physical security, and the ability to operate without interruption remaining key factors,” EXPANDIA predicts. Demand will be driven primarily by relocations, lease renewals, and selective expansion.

At the same time, the increasing prevalence of 3-5-year lease renewals indicates a growing confidence among tenants in the need to maintain a physical office presence, albeit in a more optimized volume.

Levon Papoyan already notes a certain shortage of renovated offices while maintaining the trend of increasing demand. “Since no significant new supply is expected to enter the market in 2026, vacancy will fall,” the expert predicts.

According to EXPANDIA, by the end of 2026, about 27,000 sq. m of new space may enter the market. However, given the current security risks, limited financing and cautious practice of pre-leasing, the probability of delays in the introduction of facilities remains high.

Kostyantyn Oliynyk is less optimistic in his forecasts: “In the next few years, high volatility of the macroeconomic situation is expected, even with the loyalty and support of the international community to Ukraine and possible accession to the EU and NATO. But the number of foreign companies as consumers of office real estate will not allow us to quickly absorb all the available supply.”

Source: propertytimes