Dnipropetrovsk

Supply & Demand
Total modern retail stock in Dnipropetrovsk, the third largest city in Ukraine, was estimated at over 370,560 sq m in November 2011, or 366 sq m of modern retail stock per 1,000 inhabitants.The modern retail stock in Dnipropetrovsk has been dominated by multi-tenant retail centres and shopping malls, which account for approximately 79% of total stock in the sector. Big box retail developments account for the remaining 21% of total retail stock in the city. There are no retail parks or fashion outlets in the city. Around 49,350 sq m (GLA) of new retail supply was delivered in Dnipropetrovsk in January-October 2011. The most notable was opening of the retail centre ‘Passage’, The property is located in the prime central area of Dnipropetrovsk, and it became the trigger for some new market entries in the city: along with its delivery, such brands as Marks&Spencer, GAP and L’Etoile opened their first stores in Dnipropetrovsk. In addition, three sub-quality neighbourhood retail centres were delivered in the city, including ‘Pryozernyi’ on the crossroads of Shmidta and Bobrova Streets, ‘Nautilus’ on Kalynova Street and ‘Slavyanka’ on Kurchatova Street. Additional 31,950 sq m (GLA) of retail stock are scheduled for delivery in Dnipropetrovsk in 2011. These include the DIY-store by Epicentre, as well as the retail centre ‘Library’ in downtown Dnipropetrovsk. In November 2011, there were around 278,000 sq m (GLA) in delivery pipeline in Dnipropetrovsk, with even more retail projects being announced in the city. DTZ projects however, that the new retail supply in the city in 2012-2013 will be very small with minor influence on the local retail property market. Dnipropetrovsk is considered a first-tier city to enter for a majority of retailers, which are either present or considering expansion to Ukraine. Demand remains strong for quality retail space both in high street locations and multi-tenant retail centres of the city. In DTZ’s opinion, the high attractiveness of Dnipropetrovsk is related to a combination of such factors as large population, relatively stable and diversified economic base, availability of critical mass of the retail schemes of decent
quality in the city and developed high street retailing. DTZ believes that the highest potential for retailers in Dnipropetrovsk exists in low, lower middle and premium price segments.

Rents
In Dnipropetrovsk high street retail rents currently tend to exceed average rents in multi-tenant retail centres, mostly due to the developed nature of street retailing along Karl Marx Avenue within the boundaries of the administrative centre, shopping habits of local inhabitants and lack of quality retail schemes in the non-central areas of the city. Prime high street monthly rents in Dnipropetrovsk presently vary in the range of $70-95 per sq m, with the highest rents achieved for properties along Karl Marx Avenue and Lenin Square. In the retail centres in the city, prime net monthly retail rents vary in the range of $60-80 per sq m for standard units of area 100-300 sq m.