At least ten shopping and entertainment centers were expected to open in Ukraine this year. However, developers and consulting companies surveyed by Forbes believe that 2024 will be the first year in a long time that not a single one will open.
The list of potential projects in Kyiv includes 22 shopping malls and approximately the same number in other cities. The largest of those announced for 2024 was Ocean Mall. Its opening was planned for September 1st but has now been postponed until winter. The company is currently looking for tenants.
The same situation exists with other projects in the capital and other cities. Among those still announced to open this year are Kyiv’s Lukyanovka, White Lines, and April Mall shopping malls, which developers still hope to open this year.
The reasons for the postponements are rising construction costs, labor shortages, and power outages. In a survey by the company RDA, 80% of respondents named rising construction and operating costs as key challenges, 67% cited a lack of energy resources, 48% a shortage of workers, and 40% security concerns.
“Without people, projects cannot be built, without electricity, the desired functionality cannot be maintained, and the threat of destruction slows down investment and keeps existing business owners in constant tension,” commented Oleg Klopov, project manager for commercial real estate at RDA.
This year, no shopping malls will open, assures a commercial real estate consultant who spoke to Forbes on condition of anonymity.
