Following a series of rocket attacks in Kyiv during the first half of 2025, the office real estate market has experienced a significant shift as a third of lease agreements now involve moving out of damaged buildings. CBRE Ukraine, a leading real estate advisory firm, reported that 45,000 square meters of office space were either damaged or destroyed, prompting many businesses to seek alternative locations. This situation has created a wave of relocations, with companies reassessing their physical presence in the city.
The damage is primarily concentrated in central business districts, which has led to a decrease in demand for traditional office spaces. However, there has been an increase in interest for flexible workspaces and remote options, reflecting a broader trend towards hybrid work environments. The office market is adapting to these changes, with landlords and property managers looking to reposition their assets to meet the evolving needs of businesses.
CBRE Ukraine’s report highlights the resilience of the Kyiv business community as they navigate the challenges posed by the conflict. Despite the setbacks, there is a noticeable shift in the market, with a focus on innovation and adaptability. As companies adjust their operations, the real estate sector is expected to see a transformation in how office spaces are designed and utilized, potentially shaping the future of work in the region.