Intl defense companies drive office market development instead of IT
International companies from the defense industry are becoming the driver of office market development instead of IT, the UTG press service reported.
The study based on third-quarter 2025 results states that the number of international companies and their representative offices in Ukraine continues to decline. Currently, there are 616 compared to 627 in pre-war 2021.
Kostiantyn Oleynik, head of the strategic consulting department at UTG, said, "The armed aggression of the Russian Federation in 2014-2015 led to the beginning of a mass outflow of Russian companies, the toxicity of cooperation with them, and their final closure in 2022-2023, despite attempts to re-register as Ukrainian/European legal entities."
Meanwhile, IT's share of GDP (5.42% in 2022 and 3.42% in 2024) and IT service exports ($7.52 billion in 2022 and $6.38 billion in 2024) are decreasing. Conversely, Ukraine has become a testing ground for advanced weapons systems and know-how, and global defense industry giants are launching or negotiating the opening of joint production facilities, factories, research centers, and administrative and office representative offices in the country. Germany (Rheinmetall and KMW), Turkey (Baykar), Norway (Kongsberg), Latvia (Atlas Aerospace), Great Britain (BAE Systems), the United States (Northrop Grumman), Denmark, France, Italy, Spain, and Poland are among those actively involved in this process, opening local offices and creating new jobs.
Oleynik says, "The international community's loyalty to Ukraine remains, and possible accession to NATO and the EU will likely lead to the emergence and development of new international organizations, enterprises, and brands in the country, especially those that have left Russia entirely."
As for development activity, an increase in new supply is expected this year — 63,000 sq m in 2025 versus 26,000 sq m in 2024. Plans for 2026 include 234,000 square meters of new supply, with 490,000 square meters announced for 2027.
So far, the market is showing a cautious positive trend. Vacancy decreased in Class B from 21.8% in 2024 to 20.5% by mid-2025, and in Class C from 14.8% to 14.2%. During this period, rental rates have increased — from $11.5 to $11.9 per sq m (excluding VAT, OPEX, utilities, and BOMA) in class B and from $9.1 to $9.8 in class C. The situation in Class A is stable. Vacancy is at 28.2% (down from 28.1% in 2024). Rates have decreased slightly, from $17.50 to $17.20 per square meter (excluding VAT, OPEX, utilities, and BOMA).
UTG was founded in 2001. The company has developed over 1,300 concepts for real estate projects. Over the years, 4.7 million square meters of commercial space in Ukraine has been leased with the company's participation.
