Warehouse real estate, as well as commercial, will always be in great demand because for successful business it is necessary not only to have a quality product and skillfully present it, but also to have a place to store it. A large raw material plant and a humble shop offering natural products without the addition of GMOs alike need warehouse space to store their products. Before opening the door to new opportunities for receiving passive income from your investments, we advise you to familiarize yourself with the warehouse real estate market in your home country and the rules of the game.
General characteristics of the warehouse real estate market of Ukraine
The "inherent" advantage of investing in warehouse real estate in Ukraine is the logistical and geographical features of our country. Being at the crossroads of trade routes, we have enormous potential for close trade ties with foreign investors for the purpose of exchanging goods and services. Developed transport connections between states, regions, cities and districts make logistics within large enterprises and small businesses equally convenient. Your warehouse space will be in demand regardless of whether it is located in Kyiv or the Kyiv region. The development of the logistics system makes it possible to increase competitiveness, so fast-growing businesses will not ignore an attractive offer to rent a warehouse.
The increase in demand for commercial real estate in the western regions and in the center occurred with its simultaneous decline in the south and east of the country. Front-line territories and zones with active hostilities have become dangerous for doing business. The destruction of large logistics nodes also caused the concentration of activity in safer areas. Market analysis shows that the area of warehouse real estate suffered not much less damage than the housing stock. more than 20% of the total number of offers on the market were destroyed or badly damaged. Thus, the reason for the current unprecedented increase in demand was the sad events that affected the entire country. Stabilization of the situation is expected with the appearance of new facilities, the construction of which is also temporarily suspended.
Recent trends: an analysis of the pre-war warehouse real estate market
Until the ill-fated February 2022, investors did not know grief, but them property had a greater demand than hot cakes. Particular activity was observed in the capital, where a balance between quantity and quality was established, as a result of which all participants in the process were satisfied - ndash; tenants received ready-made premises for conducting their business, and landlords could count on a decent profit. The parties to the agreement lived in harmony thanks to a number of positive trends:
- the growth of demand for warehouse real estate was associated with the active development of business, both large and small and medium. A large logistics system required the appearance of new premises to speed up the delivery of services and goods and increase its efficiency
- commercial real estate has reached a new level when a business owner seeks to centralize it in one location for greater convenience. The warehouse became part of a larger complex, which also includes offices and sales points
- scientific and technical progress touched even the most distant spheres from it - there was an active digitization of operations and warehouse management systems, which makes life easier for their owners
- the concept of "fulfillment" became not only widely used, but also brought additional endless profits into the lives of investors. The full range of services from ordering to receiving goods, characteristic of online stores, allowed to significantly expand the share of its presence in the market. And with the growth of the business, it was necessary to increase the number of warehouses to meet this potential
Many trends related to warehouse real estate stopped somewhat at the beginning of 2022, but together with the stabilization of the situation in the country, they make themselves felt again. The successful development of the market did not disappear anywhere, but it entered a temporary pause, which is gradually beginning to subside.
Briefly about the main thing
Warehouse real estate is widely represented on the commercial market. Along with endless opportunities, prospects and, of course, profit, this sector is not without temporary difficulties associated with the fact that not everyone is lucky with their neighbors. that to people, that to countries. The development of logistics, the restoration of infrastructure and other positive market trends elevate warehouse real estate in the eyes of buyers, because they guarantee reliability and profitability.
We cannot influence factors beyond our control, but a competent approach to the selection of objects for investment and an expert assessment of the market state allow thousands of our clients not to feel the influence of negative external circumstances and continue to receive stable income from their investments. Premium real estate agency T.H.E. Capital guarantees its clients high quality standards, security during the conclusion of transactions and full support at all stages. Real estate market 2024 promises to bring even more positive changes and opportunities for investors.
