Demand for Warehouses in Ukraine has taken plunge

• 15.04.2009  | 
• http://br-ua.com | 
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Category: Logistics centres

In connection with crisis many warehouses and logistical complexes in Ukraine, including newly built stand the thin. In the conditions of absence of accessible (long-term) financing and reduction of the basic sources of demand for qualitative storage rooms developers will introduce significant updatings to the plans. Experts of company CB Richard Ellis predict essential slowdown of rates of growth of the market of the warehouse real estate the next two years.

“First of all, we expect, sharp reduction of volumes of the perspective offer, because building of those projects that were at early stages of realisation will be suspended”, has declared Radomir Tsurkan, operating partner CB Richard Ellis in Ukraine.

As he said, developers will be focused on those projects which are at present already close to end and which commissioning is economically inexpedient to postpone. Besides, realisation of the future projects will occur in some stages as developers will take a waiting attitude, trying to minimise market risks.

Also the expert says that in the circumstances speculative development has lost the appeal: “In the conditions of struggle for leasers the risks connected with speculative devlopment, are considerably increased, and deficiency of a project financing and a loan capital seller’s price do these risks inadmissibly high”. At the same time, under forecasts CB Richard Ellis because of economic circumstances aggravation, building activity in the regional markets will be suspended.

To the middle of 2010 economic outlook do not instal special hopes, the further development of warehouse sector in regions will be postponed at least for 2009-2010, and the basic attention of developers will be concentrated in territory round Kiev.