At the end of 2025, the retail real estate market in Kyiv and Kyiv region showed signs of gradual recovery: vacancy declined, rental rates in quality shopping malls stabilized, and the key demand drivers were grocery chains, discounters, and Ukrainian fashion brands.
According to EXPANDIA analytics published on InVenture, the capital’s retail real estate market remained resilient in 2025 despite wartime risks, power supply disruptions, and the cautious stance of some international brands. The market was supported by improving consumer sentiment, growth in real household incomes, and active retailer expansion in neighborhood formats.
The total competitive supply of retail space in Kyiv changed little, reaching 1.59 million sq. m, up just 0.3% year-on-year. Only one new small neighborhood shopping center entered the market during the year — Baltic Sky, with GLA of 6,200 sq. m. Provision of quality retail space remained at 530 sq. m per 1,000 residents.
Demand for retail space was supported by a 7.5% year-on-year increase in retail turnover, as well as a 26% year-on-year rise in average wages. The consumer sentiment index increased to 78.5 points, while the major purchase sentiment index rose to 66.9 points, indicating a gradual recovery in households’ willingness to spend.
Grocery retailers and discounters remained the most active players in 2025. In the Kyiv region, Fozzy Group opened more than 50 new locations, ATB added 14 stores, Novus Ukraine expanded by around 15 locations, and Aurora opened 42 new stores. Around 60–70% of new openings in Kyiv were small neighborhood-format stores, reflecting a shift toward a more decentralized consumption model.
In the fashion segment, international brands remained cautious. The only new international fashion brand to enter the Kyiv market in 2025 was Karl Lagerfeld Jeans, which opened its first store at Ocean Plaza. At the same time, Ukrainian brands continued to strengthen their positions, with around 67% of their new openings concentrated in shopping centers. Among the most active local players were Arber, Fabric17, Famo, Gepur, JUL, OnebyOne, Papaya, Stimma, and VOVK.
Against the backdrop of limited new supply, average vacancy in Kyiv shopping centers declined to 11.5%. In prime malls, the figure fell to 12%, while neighborhood shopping centers in densely populated residential districts maintained low technical vacancy of 2–3%.
Rental rates in the best shopping centers remained stable in the range of $40–70 per sq. m per month for standard gallery units of 100–200 sq. m, excluding VAT and OPEX. In neighborhood malls, rates stood at $19–40 per sq. m per month, 15% higher than a year earlier.
In 2026, around 137,000 sq. m of new retail space is expected to enter the market, primarily through Ocean Mall with GLA of 110,000 sq. m and White Lines with GLA of 27,000 sq. m. At the same time, experts do not expect a significant deterioration in market occupancy. A more likely scenario is a redistribution of tenants and consumer flows between new and existing shopping centers.
A key trend in 2026 is likely to be the further strengthening of Ukrainian retailers, which are increasingly viewed by developers not as a temporary substitute for international brands, but as stable tenants capable of supporting foot traffic and occupancy in retail properties. International retailers, according to forecasts, are expected to continue their cautious expansion into Ukraine, primarily through franchise models and local partners.
