Page 73 - UKRRptSept22

Chernihiv by 97%, Kharkiv by 97%, Sumy by 88%, Volyn by 55%, and Zhytomyr by 45%. In the central regions of Ukraine, rental demand increased in Vinnytsia by 266%, Kirovohrad - by 234%, Cherkasy - by 176%, and Khmelnytskyi - by 99%. The Poltava region increased by 364%.
Warehouse vacancy in the Kyiv region has increased to 5%, and this trend will continue. Logistics real estate vacancy in the capital region has risen to 5% since the beginning of the war, said the founder of Watermelon Development, Fedir Arbuzov. According to Arbuzov, everyone expected that the significant, more than 20%, loss of such premises would cause an industry shortage. However, the opposite scenario has developed: 77,000 square metres are available, almost 5% of the total supply. Arbuzov noted that the vacancy rate will continue to grow in the future because many businesses have changed or are currently changing their operations model. Some companies think that keeping a distribution centre in Kyiv is ineffective. Thus, many companies have opened small hubs in Lviv and Uzhhorod. As a result, in the western regions of Ukraine, rates are already higher than in the capital.
9.1.5 Retail sector news
The war collapsed the household appliance market in Ukraine by 28%.
The volume of the Ukrainian household appliance and electronics market in the first half of 2022 decreased by 28% to $1.3B compared to the same period last year, according to GfK. According to industry experts, the appliance market reached its lowest level in March with a decrease of 59% in monetary terms, but the recovery process began in May. Photographic equipment sales decreased by 47%, audio, and video equipment by 44%, game consoles fell by 72%, and televisions by 43%. Telecom and IT products, on the contrary, showed the best results with a decrease of 22% each. Sales in the large household appliances category fell by 33%, small by 29%, and office by 35%. Analysts emphasised that changes in consumer demand are due to migration and the transition from luxury goods to less expensive options.
9.1.6 Agriculture sector news
Ukraine's purchases of alternative grain storage have exhausted the world reserves. As Minister of Agricultural Policy Mykola Solsky said, Ukraine will need disposable and mobile grain storage facilities with a total capacity of up to 20 million tons to store crops from the current season. Most of the crop storage means were purchased privately by Ukrainian agribusiness. Around 15-19 million tons of single-use storage were contracted by businesses, and with the help of international funds and through the organisation of the FAO, approximately 6 million tons of single-use storage were purchased. According to Solsky, a separate tender was held by USAID for the purchase of mobile silos capable of storing more than one million tons of crops, as well as equipment for their loading and unloading.
Ukraine's agricultural exports could rise to 6mn-6.5mn tonnes in October, double the volume seen in July, as its seaports gradually reopen, the country's agriculture minister said on August 30, reports Reuters.
Exports have picked up since three Black Sea ports were unblocked by the Istanbul grain deal on July 22 between Moscow and Kyiv, brokered by the United Nations and Turkey.
73 UKRAINE Country Report September 2022 www.intellinews.com