According to EXPANDIA analytics published on InVenture, annual gross absorption of office space reached approximately 160,000 sq. m, which is 26% higher than a year earlier. At the same time, no new business centers were delivered to the market during the year.
One of the defining features of the market remained its dependence on security risks. About 70,000 sq. m of office space was partially or significantly damaged by missile strikes, accounting for 3.4% of the competitive supply. As a result, the total office stock decreased to 2.10 million sq. m, marking a rare case of the market physically shrinking due to infrastructure losses.
Despite this, leasing activity in the capital increased. The total volume of transactions reached 165,000 sq. m, including pre-leases and lease extensions. However, about 40% of gross absorption resulted from forced relocations from damaged buildings, indicating that a significant share of market dynamics continues to be driven not by organic business expansion but by companies adapting to wartime risks.
The most active tenants were IT, technology, and telecommunications companies, which accounted for 26% of demand and the largest number of transactions. They were followed by banks and financial institutions with a 13% share, as well as manufacturing, industrial, and energy companies with 11%. The report also notes that the share of military tenants in demand continued to grow.
Against this backdrop, the vacancy rate declined to 18.5%, down 3.6 percentage points since the beginning of the year. The largest decrease was recorded in non-central submarkets, where vacancy dropped to 14%. However, the market remains tenant-driven: companies are cautious when selecting space, often reduce leased areas, and prefer move-in-ready offices in high-quality business centers.
Rental rates remained relatively stable. The effective rent for Class A offices without fit-out ranged between $14–18 per sq. m per month, while fully fitted offices were leased at $19–25 per sq. m per month. Asking rents for Class A offices ranged from $16–27 per sq. m, while Class B offices were offered at $8–18 per sq. m, depending on location and property quality.
The outlook for 2026 remains restrained. According to EXPANDIA, only about 27,000 sq. m of new office space could enter the market by the end of the year. However, the risk of delays remains high due to the security situation, limited financing, and low pre-leasing activity.
Overall, the Kyiv office market in 2025 showed signs of recovering demand, but the recovery remains fragile. The increase in activity was driven mainly by tenant relocations and adaptation to wartime conditions, while a full return of development activity and stable organic demand has yet to materialize.
