The vacancy rate of Kyiv malls amounted to 10% by the end of 2020

The vacancy rate of Kyiv malls amounted to 10% by the end of 2020

16.01.2021

The vacancy rate of Kyiv malls amounted to 10% by the end of 2020

According to the data provided by NAI Ukraine, by the end of 2020 the vacancy rate in Kyiv malls stabilized at the level of 10% after its increase in course of the exit from the spring lockdown.

According to the company’s report, the entry into the market in 2021 of a large number of new projects that were suspended during the coronavirus crisis will cause further growth in market vacancy rate. It is planned to open the second stage of Blockbuster Mall (55 thousand sq. m), Ocean Mall (99 thousand sq. m), the second stage of the April shopping center as part of the April City multifunctional complex (47 thousand sq. m. of the total project area 86 thousand sq. m), shopping center as part of the White Lines residential complex (21 thousand sq. m) in 2021.

“Along with the new proposal, the vacancy rate is expected to increase, if such a significant amount will be really released, its return to normal (less than 10%) is likely to occur already in 2022,” the study says.

According to NAI, the continuation of quarantine restrictions and a large volume of new offers will constrain the growth of rental rates in 2021, which will remain at the level of the previous year. At the same time, the rates in the highest quality property units will quickly return to the indicators of 2019 and higher.

In general, the attendance of malls decreased by only 26% in 2020, despite the fact of malls closure for several months during the spring lockdown and weekend quarantine in November, NAI cites data from Watcom. Along with this, conversion and average check increased.

At the same time, the growth of retail turnover as of 11 months of 2020 up to plus 7.6% gives reason to expect further increase in figures in 2021 in case of moderate quarantine restrictions.

“It is expected that retail turnover will at least repeat the dynamics of 2020, and with more moderate quarantine measures and pandemic pressure drop in 2021, it will return to the growth rates of previous years,” the company comments on the situation.

Source : Interfax

 

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