There is not only huge demand for warehouses, but also low supply that meets Western requirements.

In 2006, a significant improvement in the situation has not happened. Demand for professional warehouse facilities will continue to grow rapidly, outpacing the offers. Coming on the market new built logistics complexes could be expected only by late 2008. Rents will be raised.

Regarding to the improvement of the investment climate in the country, lower investment risks in the industrial production, rising imports and other factors, demand for warehouse real estate is growing constantly.The capacity of Kiev warehouse property market is about 1 million sq.m. But at the end of 2006, total professional warehouses space in Kiev and the area was just over 200,000 sq.m. And all the high quality warehouses in Kiev and the Kiev area is already filled by customers almost at 100%.

At the same time, some 80% of the warehouses in the city and the area did not meet international standards can be assigned to class C at most. As a result, the warehouses are located on the non-professional premises, which in the past were factories and plants So they did not meet the basic requirements : no special loading platforms and equipments, no conditions for the appropriate staff and cargo security, not complied with the height conditions, accessible is difficult. The estimated amount of such space is about K 500 sq.m.

The demand for specialized warehouses partially meet former fruit and industrial base, usually situated near major transportation routes, roads, railways. An important advantage is the availability of loading ramps, as well as facilities supporting proper temperature for storing food or medicines for example. But among such objects only a few ones meet the necessary standards.The total area of such facilities in Kiev about K100 sq.m.

In 2006 the market was filled with only K60 sq.m. of warehouse and 2007 it would go up to K170 sq.m. But only in Kiev must build at least K300 sq.m. of warehouses Class A. Now, as on the Ukrainian market is increasingly facing international logistics company we can expect to increase a market. Thus, there is new “MLP – Chaika” mixed-use (office-warehouse) with total area about K110 sq.m., located on Kiev-Lviv higway. GLD Invest Group planned opening at 2007, their first logistics complex - East Gate Logistic with area more than K40 sq.m.

My opinion (and other experts as well), the most suitable for the development of warehouse real estate is the Odessa and Zhitomir destination. Areas near Gostomel and Irpen (Warsaw direction), Glevah (Odesske direction) and Obukhov (Dnepropetrovsk direction) outside Kiev in 35 km distance are good as well.

Right bank is preferable for the warehouses is defined as congestion bridges connecting the right and left banks, and the absence of district roads in the Kiev' eastern part.

The source: Ukraine Real Estate Market