The office real estate market of Kyiv and Ukraine's large cities is stabilizing by May 2026, but remains a tenant's market

By May 2026, the office real estate market of Kyiv and Ukraine's largest cities is showing cautious stabilization after several years of shocks caused by the pandemic, the full-scale war, business relocation and the shift of some companies to a hybrid work model. The main demand factors remain building security, ready-made fit-out, autonomous infrastructure, the availability of shelters and the ability to move in quickly without significant capital expenditure.

Kyiv remains the country's largest office market. According to InVenture estimates, the total competitive supply of office real estate in Kyiv shrank to 2.10 million sq. m in 2025, and the vacancy rate fell to 18.5%. Annual gross absorption was about 160,000 sq. m, which is 26% more than a year earlier. At the same time, about 40% of absorption was linked not to organic business expansion but to forced relocations of companies from damaged properties.

According to the Confederation of Builders of Ukraine, citing a CBRE Ukraine presentation, in the first half of 2025 demand for offices in Kyiv grew by 16% to 82,000 sq. m, while supply fell by 3% to 2.1 million sq. m due to damage to office buildings. The market vacancy rate was about 21%, and 20% of demand came from tenants forced to relocate from properties hit by strikes.

“The office market in Kyiv can no longer be assessed by pre-war logic. Today a tenant chooses not just an address or building class, but a property's ability to ensure business continuity. Shelters, generators, engineering systems, the security of the district and the readiness of the premises for quick move-in have become as important parameters as the rental rate,” says Maksym Urakin, founder of the analytical center Experts Club, candidate of economic sciences.

Rental rates in Kyiv remain relatively stable, but the market retains pronounced differentiation. According to InVenture, effective rates for class A offices without fit-out at the end of 2025 were $14-18 per sq. m per month excluding VAT and operating expenses, and for fitted-out offices $19-25 per sq. m. Asking rates for class A ranged from $16-27 per sq. m, and for class B from $8-18 per sq. m.

In 2026, the Kyiv office market remains a tenant's market: property owners are forced to offer flexible terms, divide large spaces into smaller blocks, invest in ready-made finishing and increase the autonomy of buildings. At the same time, the best class A and B+ properties with shelters, stable power supply and quality operation retain demand better than outdated buildings and premises without fit-out.

Anastasiia Kachan, senior consultant for office real estate at CBRE Ukraine, noted that in Kyiv the link between the rental rate and the specific location of a business center has strengthened: now what matters is not only proximity to the metro, but also location relative to infrastructure or military facilities. According to her, each business center can in practice operate outside the typical rules of its submarket or district.

IT companies remain the key tenants in Kyiv, but the structure of demand has become broader. Activity is also generated by the defense sector, medical companies, professional services, consulting, logistics, representative offices of international organizations and part of the business connected with reconstruction. According to KBU/CBRE Ukraine, demand from the military sector grew noticeably in 2025, and the market began to adapt its offerings to such needs.

“The office has ceased to be a place of daily presence for all employees, but it has not lost its importance for management, communication and corporate culture. Companies are optimizing their space, but are not giving up on a quality office. Therefore demand is shifting from large monofunctional spaces to more flexible, safe and technological formats,” notes Experts Club.

Development activity remains minimal. In 2025, not a single new business center was commissioned in Kyiv, and by the end of 2026, according to InVenture, about 27,000 sq. m may enter the market, although delivery dates may be postponed due to security risks, limited financing and a low level of pre-leasing.

The situation in Ukraine's large cities is uneven. Lviv remains one of the most active regional office markets thanks to business relocation, the presence of the IT sector, proximity to the EU border and a relatively higher level of security compared with the eastern and southern regions. According to Forbes Ukraine, by the end of 2025 the vacancy rate in Lviv's business centers had fallen to 25%, while rental rates remained at $7-15 per sq. m.

In 2026, the Lviv market can be considered the second most important after Kyiv in terms of office demand, although its scale is limited. For tenants, what matters are ready-made premises, transport accessibility, energy resilience and the ability to accommodate small or medium-sized teams. Large deals remain rare, and some companies prefer hybrid formats or coworking spaces.

Dnipro retains its role as an industrial, logistics and service center, but the city's office market remains more local and less institutionalized than in Kyiv or Lviv. Demand is generated by regional companies, service businesses, retail operators, logistics, medical services and some manufacturing structures. Because of its proximity to the zone of heightened risk, tenants are particularly sensitive to security, cost and the autonomy of premises.

Odesa remains an important southern business center, but the city's office market depends heavily on overall security, port and logistics activity, tourism, trade and service businesses. The market includes both classic offices in central districts and premises in new multifunctional complexes. Demand in 2026 remains selective: tenants choose ready-made small premises, while large corporate deals are limited.

Kharkiv remains the most difficult of the large office markets due to the high level of security risks and its proximity to the front-line zone. A significant part of business operates in a reduced, distributed or remote format. At the same time, the market has not stopped completely: demand persists for small offices, service premises, spaces for local business and properties with minimal operating costs.

“In regional cities, office real estate has stopped being a single segment. Lviv works as a market of relocation and IT, Dnipro as a market of industrial and service business, Odesa as a southern trade and logistics hub, Kharkiv as a market of survival and adaptation. Therefore it is no longer correct to compare them only by rental rate: it is more important to look at security, the tenant profile and the resilience of the local economy,” says Maksym Urakin.

A common trend across all large cities has been a reassessment of office space. Companies more often choose smaller areas, ready-made fit-out, flexible lease terms and buildings where the owner bears part of the capital costs. Premises without fit-out and large blocks in outdated properties remain less liquid, since tenants are unwilling to invest in an expensive fit-out amid high uncertainty.

Another factor is autonomy. After the energy crises and attacks on infrastructure, offices with generators, stable internet, backup systems, shelters and quality management gained a competitive advantage. In a number of cases, such characteristics allow properties to hold their rate even amid generally high market vacancy.

According to InVenture, the investment logic of office real estate became more cautious in 2026: before the pandemic and the war, the typical payback period of an office property was estimated at roughly 7-8 years, whereas in 2026 10-12 years is already becoming the norm for most assets. The best properties with a strong tenant and a good location may show more attractive results, but this is rather the exception.

According to the Experts Club forecast, by the end of 2026 Ukraine's office market will follow a scenario of slow recovery without a sharp rise in rates. Kyiv will retain its status as the main market, Lviv as the main regional demand center, while Dnipro, Odesa and Kharkiv will develop mainly through local tenants and selective deals.

“The main risk for the market is not a lack of demand, but its quality. Demand exists, but it has become cautious, rational and demanding. Tenants want to pay not for square meters, but for a guaranteed ability to work. This means that office real estate in Ukraine is gradually moving from a model of space to a model of service and resilience,” Experts Club sums up.

Thus, by May 2026, the office real estate market of Kyiv and Ukraine's large cities remains in a transitional phase. It has already passed the period of shock decline but has not yet returned to a full investment cycle. The most in-demand offices are becoming those that are secure, ready for use, energy-resilient and flexible. Outdated properties without fit-out, autonomy and a clear operating model will continue to lose competitiveness.