Ukraine to See Surge in Warehouse Space Amid High Demand – Sky Bulletin

In light of the current scarcity of warehousing facilities, the Ukrainian market is poised for a significant increase in warehouse space, mostly concentrated in the Kyiv area. From 2024 to 2025, the sector could witness the introduction of new logistics complexes totaling approximately 161,000 square meters, marking a decade peak, according to CBRE Ukraine. Although there is a chance that some projects may face delays, RLC, a leading developer in the field, is on track to refurbish its damaged warehouse by the year’s end. The warehouse market has incurred the loss of 500,000 square meters due to bombardments, affecting 30 sites across Ukraine. Only 12 of these, with a combined area of 150,000 square meters, are repairable and will re-enter the market, while the remaining 17, accounting for 350,000 square meters, were completely devastated. With the shortage of supply and a 25% reduction in 2022, even spaces previously considered unattractive are now rapidly leased by tenants.

How much new warehouse space is expected in Ukraine?

Around 161,000 square meters of new warehouse space is anticipated to be developed in the Kyiv region over the next two years.

What has led to the current warehouse shortage in Ukraine?

The shortage has been caused by the destruction of warehouse facilities due to shelling, with an estimated 500,000 square meters lost.

Will all the damaged warehouses be rebuilt?

No, out of the 30 damaged warehouses, only 12 with a total of 150,000 square meters are slated to be rebuilt, while 17 facilities were irreparably destroyed.

What has been the impact of the warehouse shortage on the market?

The warehouse shortage has led to a 25% decrease in available space and an increased demand for even previously illiquid spaces.

Who is RLC, and what are their plans?

RLC is one of the largest developers in the Ukrainian warehouse market and plans to finish reconstructing their destroyed warehouse by the end of the current year.

The Ukrainian warehouse real estate market is projected to rebound with a surge in development, offering hope for alleviating the current shortage. This anticipated growth, representing a record in the last ten years, reflects confidence in the sector’s recovery post-crisis. Despite potential setbacks and ongoing challenges, the regeneration of warehousing space underscores the resilience and strategic importance of logistics infrastructure in Ukraine’s economic landscape.