KnightFrank expects office space in Kyiv to double

Real estate consulting group KnightFrank LLC Ukraine said yesterday in a commercial real estate market review of Kyiv that it expects office space in the capital to double in 2010. The group said it forecasts 173 ths m2 to be commissioned this year, a 1.9x yoy increase. About half of the new supply to hit the market was built in 2009, but has yet to be opened for business. KnightFrank said that the amount of office space commissioned in Kyiv in 2009 was down 27% yoy. The vacancy rate in business centers, which in 1H09 was 10-15%, reached 15-20% by November 2009. The company said that the office real estate market was not expected to pick up until the end of 2010, contingent on the overall economic and political situation in the country.