Challenges and prospects of Ukrainian commercial real estate during the war – UTG

Vadim Neposedov, founder and President UTG

The market of commercial real estate of Ukraine has changed dramatically in all segments in the coronary-veil and continues further transformation during the war. Consider how trade, office and residential real estate responds to stress calls.

Trade real estate - development within a rigid economy

Retail feels a dramatic change in consumer preferences, with a decrease in the number of consumers, the fall of the well-being of a large part of citizens and a significant increase in the income of the military. At the same time, 53% of citizens talk about a drop in income during surveys, and 67% had a significant increase in spending, primarily on housing and communal services, food, health care, and transport. Two categories show growth – military goods and life support systems to counter the consequences of shelling of power plants and boiler houses (solar panels, charging stations, generators, autonomous Internet, flashlights, potbelly stoves, radiators, batteries).

Forced migration abroad (about 5 million of our compatriots) caused a reduction in the share of the retail chain – not only the closure of luxury stores (Chanel, Cartier), but also a reduction in child-oriented services (children’s entertainment, education, sports, goods and toys). The war as a whole stung the segment focused on adult leisure. For example, today the feasibility of buying evening wear is extremely low. Operators of entertainment (cinemas, distribution centers, bowling alleys), sports and catering establishments work very restrainedly.

With regard to the proposal of brands - with the beginning of the war, the total exit from the Ukrainian market retailers from russia has ended (although attempts are