Donetsk

Supply & Demand
Donetsk with an official population around 1 million inhabitants is one of the major coal-mining and industrial centres of Ukraine, as well as the regional and administrative centre of the Donbas river basin, forming the heavy industrial heartland of the country. Donetsk was selected as one of four Ukrainian cities to host matches of EURO 2012 Football Championship, and this already led to significant improvements in the city infrastructure and general attractiveness.
Cumulative modern retail stock in Donetsk and its satellite city Makiivka was estimated at around 340,040 sq m in November 2011, or 340 sq m of modern retail stock per 1,000 inhabitants. This includes the new supply delivered in 2011 and comprised of the 9,460 sq m extension of the retail and leisure centre ‘Donetsk City’. The modern retail stock in Donetsk has been evenly split between multi-tenant retail centres and shopping malls, which account for over 49% of total stock, and big box retail developments. Alike elsewhere in Ukraine, retail parks and fashion outlets are absent in Donetsk. As of November 2011, there was only around 39,000 sq m (GLA) retail space planned for delivery in 2012-2013, an increase on current stock of approximately 11%. Major schemes planned for delivery in 2012-2013 in Donetsk include the extension of ‘Auchan City Park’ in Makiivka developed by Immochan, as well as the neighbourhood retail centre ‘Yuzhnye Sklony’ by local Depot Development Group affiliated with Foxtrot Group. High street retailing is developed in Donetsk, primarily because of the lack of quality multi-tenant retail centres in the city. Donetsk, as one of the most affluent cities in Ukraine, is regarded to share with Odessa the position of the second after Kyiv most attractive destination to enter for majority of retailers, operating in all pricing categories. However, the severe deficit of quality retail properties in Donetsk remains one of major obstacles for retailers’ penetration of the market. Many quality retailers entered the local market together with the delivery of the retail and leisure centre ‘Donetsk City’. Notably, all major big box retailers, including Praktiker, Metro Cash&Carry, Auchan and Epicentre, opened their stores in the satellite city Makiivka. Demand remains very strong for quality retail space both in high street locations and retail centres in the city.