The warehouse real estate market in Kyiv and the surrounding region posted its strongest recovery since 2008 in 2025: new supply reached 216,000 sq m, demand rose by 30%, and vacancy declined to 3.5%. The main beneficiary of this cycle was Roman Kutsyi’s Alfa Development Group, which delivered more than 80% of all new space in the region.
The warehouse real estate market in Kyiv and Kyiv region reached record levels of new construction and leasing activity in 2025. According to EXPANDIA research, annual new warehouse supply totaled about 216,000 sq m, the highest figure since 2008. Total competitive stock increased to around 1.57 million sq m, effectively recovering to its pre-war level.
The key player behind this recovery was Roman Kutsyi’s Alfa Development Group. According to Forbes Ukraine and EXPANDIA, in 2025 the company completed around 177,000 sq m of warehouse space in Kyiv region, accounting for more than 80% of all new deliveries in the region. ADG’s portfolio in Kyiv region exceeds 519,000 sq m, or roughly one-third of the region’s total warehouse supply.
ADG’s main projects in 2025 were the third and fourth phases of the Oleksandrivskyi logistics complex with a total area of 145,000 sq m, as well as the fourth phase of the Chaiky complex totaling 32,400 sq m. ADG’s website states that the total area of Oleksandrivskyi amounts to 220,000 sq m, while the company’s Kyiv region portfolio also includes the Chaiky, Makarivskyi, Shchaslyve, and Dudarkiv complexes.
Demand for warehouse space remains high despite security risks. In 2025, gross take-up in the Kyiv and region market totaled about 217,000 sq m, up 30% year on year. Retailers were the most active tenants, accounting for 51% of demand, followed by logistics operators with 44%, while pharmaceutical and medical companies accounted for 5%. The market continues to be driven by e-commerce, distribution, pharmaceuticals, and companies seeking replacement space for warehouses damaged since 2022.
Despite record levels of new deliveries, market vacancy declined to 3.5%. This suggests that a significant share of new warehouses entered the market with pre-lease agreements already in place or were quickly absorbed after commissioning. Asking rents for dry warehouses in hryvnia terms are in the range of UAH 200–250 per sq m per month, while the prime effective rate stands at about $5.3 per sq m per month excluding VAT and OPEX.
At the same time, the market remains vulnerable to wartime risks. According to Forbes Ukraine, logistics facilities were the most frequent commercial real estate targets of Russian strikes in 2025, with four out of ten recorded hits involving warehouses. Between 2022 and 2025, owners in the Kyiv region lost about 498,000 sq m of warehouse space, but this shortfall has partly created deferred demand for new high-quality facilities.
In 2026, the pace of new construction may slow. EXPANDIA expects future supply in the Kyiv and regional market to total about 90,000 sq m. Additional activity will be generated not only by speculative warehouse projects, but also by build-to-suit formats for large retailers and logistics operators.
According to Forbes Ukraine, ADG plans to complete the fifth phase of the Chaiky logistics complex in 2026, adding about 57,000 sq m. At the same time, other players are becoming more active in the market: Zammler is building its own Class A+ logistics center in Kyiv region, Alterra Group is developing new phases of the Joule logistics center, WinHub has acquired land for a logistics park, and Dragon Capital is working to resume the implementation of two industrial parks in Kyiv region.
Dragon Capital is also developing industrial real estate outside Kyiv region. In March 2026, the company started construction of the second phase of M10 Lviv Industrial Park with an area of 22,000 sq m and announced a strategy to build a portfolio of new industrial real estate in Kyiv and Lviv. Overall, Dragon Capital’s portfolio includes two industrial parks: M10 in Lviv with 140,000 sq m and E40 Industrial Park near Kyiv with 200,000 sq m.
Despite the emergence of new projects, experts do not expect ADG to lose its leadership quickly. The company already has a large-scale portfolio, experience of construction under wartime conditions, and lower costs, allowing it to compete on rental rates. At the same time, competition is gradually shifting beyond price into the quality of supply: multi-temperature, pharmaceutical, and build-to-suit warehouses remain in short supply, with demand exceeding available stock.
Thus, 2025 became a year of recovery and concentration for the warehouse market in Kyiv region: ADG consolidated its position as the largest player, while strong demand, low vacancy, and a shortage of specialized formats continue to create room for new developers and institutional investors.
