Market View Dnipropetrovs’k Retail

Market View Dnipropetrovsk Retail

Full Year 2011
Hot Topics
• Modern retail stock is dominated by multi-tenant retail centers and shopping malls • 270 sq. m. of quality retail premises per 1,000 people • Home city for national retail chains: “ ALLO” , “ Astel” , “ Mobilochka” , “ ABV-technics” , “ Bol’shaya Lojka” , “ Eva” , Comfy • Second city in Ukraine for regional expansion (Marks & Spencer, GAP, MAC, L’Etoile, Inditex Group (Zara, Bershka, and Pull & Bear)

FUNDAMENTALS Dnipropetrovs ’k is the third larges t city in Ukraine with a population of more than 1 million inhabitants , is one of Ukraine’s main bus ines s , indus trial and s cientific centers . Dnipropetrovs ’k city is growing rapidly, and on the background of new buildings , is increas ingly becoming a vis ible part of the old buildings . T he city holds the s econd place after K yiv in terms of quality s hopping center s upply and amount of profes s ional retail operators . Majority of retailers which are already pres ent or planning expans ion to Ukrainian regions cons ider Dnipropetrovs ’k as a firs t-tier city to enter. S ucces s ful retail development and expans ion to other regions became pos s ible due to pos itive trends in financial environment. Wage level increas e followed by economic upturn in 2011. Average wages in Dnipropetrovs ’k are $353 per month, s econd highes t in Ukraine (higher wages only in K yiv). C ons equently, retail s ales have s hown 10.7% increas e relatively to 2010 year (in comparis on to 9.1% 2010 increas e).
Dnipropetrovsk Wages, Retail Turnover and CPI, (% change, y-o-y)
CPI 70 60 50 40 30 20 10 0 -10 -20 2006 2007 2008 2009 2010 2011 Real wages Retail turnover


Passazh is located in the prime central area of Dnipropetrovs’k. Both of them are developed as multifunctional complexes. “Astel”. These new projects include City Centre and Cascade Plaza. The most popular Dnepropetrovsk`s shopping centers are Most-City Centre. Karavan. Dafi. m. m) and Passazh (13.620 sq. Alef Estate. Furthermore market Ukrainian is largest located food in “Ozerka” Dnipropetrovs’k area. m).000 people. m. “Bol’shaya Lojka”. For 7000 6000 5000 4000 3000 2000 1000 0 Retail trade objects Retail trade enterprises Stores Semestationary instance. During 2012 is expected of 28.000 sq. m to be delivered. During 2011 year two retail projects joined the market: Priozerniy. “Eva”.5 times for last 10 years. Karavan and Dafi. As reported. Comfy had been established in Dnepropetrovsk. Dnepropetrovsk market remains second of the most saturated among Ukrainian cities with around 270 sq. they account for about 79% of total retail stock in the market. such chains as “ALLO”. Akselrod Estate S ource: Dnipropetrovs ’k S tatis tics Office represent the strongest local developers and investors in retail market. phase 1 (21.800 sq. Logos. These chains are dominating in local market and expanding their network all over Ukraine. In 2002 city had 2 .000 sq. with 33. of quality retail premises per 1. m and 16. “Mobilochka”. “ABV-technics”. and it brought some new market entries in the city: First stores of such brands as Marks&Spencer. Dnipropetrovs’k has no fashion outlets or retail parks. Amount of Dnepropetrovsk’s supermarkets has increased almost 2.SUPPLY Dnepropetrovsk is a homeland of many effective national trade chains. Modern Dnepropetrovsk’s retail stock is dominated by shopping malls and multitenant retail centers.000 sq. Another 21% of remaining retail stock belongs to big box retail developments.000 sq. GAP and L’Etoile opened their doors exactly in Passazh center. 63. m of GLA accordingly.

15 ($20) 0. now there are roughly 98. Price Ranking For Shopping Centers) Secondary Retail Premises (Not RAYON AmurNyzhnodniprovskyi Babushkinskyi Industrialnyi Kirovskyi Krasnohvardiiskyi Leninskyi Samarskyi Zhovtnevyi DYNAMICS % ($) 0. today there are 1049. $1 264 $1 758 $1 396 $1 607 $1 570 -0.95 ($17) $1 772 Retail TradeVolume. And the mos t expens ive for buying became Zhovtnevyi rayon where the average price reached to $1 772 per s quare meter. Dynamics s hows tendency to food s hops ` area enlargement leading to decreas ing of total amount of food retail s pots . T en years ago there were 1337 operating food s tores .94 ($15) -0.19 ( $3) $ per sq. mln UAH 35000 30000 25000 20000 15000 10000 5000 0 Retail turnover dynamics. Favorable financial environment attracts new players as well as existing retail chains. Lenins kyi has remained as the cheapes t rayon with average price of $1240 per s quare meter. P ractically all of thes e s upermarkets belong to s everal retail chains . S ale market recent res earch s hows 0.26 ( $16) $1 285 -0.40 large s upermarket retails .4( $6) 0. This attractiveness is due to combination of such factors as relatively 40 20 0 3 . % 140 DEMAND 120 Demand for quality retail space in 100 80 60 Dnipropetrovs’k remains strong both in multi-tenant retail centers and high street locations of the city.m.96 ($12) 1.88 ( $11) $1 240 1. However total amount of food s tores has decreas ed by 22%.2% ($3) (or $1539 per s quare meter) price increas e for Dnepropetrovs k`s secondary retail premis es not located in s hopping centers .

However vacancy rate has increased by 6% as of 2011 caused by the delivery of new projects. Additionally. low. m of new retail premises are expected to be completed with total of 297400 sq. m. Inditex G roup (Zara. developed high s treet retailing and availability of critical mas s of the retail s chemes of proper quality in the city.s table and divers ified economic bas e. G AP . During last year prime net monthly retail rents in the retail centers in the city vary in the range 4 . Rents for high street retail premises are higher than for multi-tenant retail centers. FORECAST Taking into consideration announced completions of new projects it is expected vacancy rate to remain stable as of 2012. MAC . Most of center city stores are located along highly developed Karl Marx Avenue. and P ull & B ear) opened in Dnipropetrovs ’k). 27800 sq. lower middle and premium price s egments are equally attractive for Dnipropetrovs ’k retailers . After crisis rents had fallen by 50% and remain stable till 2010. At the same time the highest rents for properties along Karl Marx Avenue and Lenin Square presently vary in the range of $70-95 per sq. m for standard units. High average wages and increas ed retail s ales attract large foreign players . L’E toile. B ers hka. Monobrand s tores cons ider their openings in Dnipropetrovs ’k as the s econd mos t important after K yiv (firs t regional s tores of s uch firms as Marks & S pencer. of $60-80 per sq. large population. All price s egments . m supply of quality shopping center stock. RENTS Retail premises` rents remain quite high during last few years.

K arl Marx Ave. P has e K aravan-2 Magelan Miriada-3 P riozernyi../Plekhanova St../Kharkovskaya St.2 Materik Miriada Miriada-2 Most-City Centre Noviy Center Noviy Kontinent Passage Priozernyi.. 118D Malinovskogo St. 67D Nizhnedneprovs kaya S t. 17 Marii Kyuri St. 2 GLA.. 50 Bobrova St. 25 Mironova St. 1A Centralnaya St. 5 Kalinovaya St... K arl Marx Ave. P has e 2 V ladimirs kiy Zaporozhskoe Shosse.. 2 Panikakhi St.. 67D Nizhnedneprovskaya St... 12000 n/a 13000 5000 32000 17500 9800 n/a 50000 8000 20000 42000 n/a n/a 2012 2012 n/a n/a 2012 n/a n/a n/a n/a n/a 5 . 17 K os miches kaya S t... 1 Pobedy Nab. 17 S hmidta S t.. 2 Zvezdniy Blvd. 86A Karl Marx Ave. 9A Kirova Ave.. 72 G eroev Ave..../B obrova S t. 32 Karl Marx Ave.. 2 Glinki St./ Glinki St E katerinos lavs kiy B lvd. 15 Geroev Stalingrada St. SQ M 19500 10300 8700 16000 5300 9000 63 800 13500 9000 6400 33000 7000 5700 13000 21620 6800 8300 12700 COMPLETION/ANNOUNCED DELIVERY 2009 2006 2005 2005 2005 2002 2008 2006 2007 2008 2006 2004 2005 2011 2011 2003 2007 2007 Retail Schemes Under Construction 1 2 3 4 5 6 7 8 9 10 11 12 Amstor Brama C as сad P laza C ity C enter Dafi-2 G rand P laza. G azety P ravda Ave. P has e 2 K aravan-1. Phase 1. Phase 1 Terra-1 Terra-2 Vavilon NAME Appolo ADDRESS Titova St. 10 Karl Marx Ave. Phase 1 Karavan-1. G azety P ravda Ave .. 11 Glinki St... 22 Ekaterinoslavskiy Blvd. S lavy B lvd.Existing Retail Schemes # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Atrium Bosfor Dafi Europe Grand Plaza..

ukrainehotels online.S ources : Dnipropetrovs ’k S tatis tics Office art=1296136034 http://znaimo.kanzas ountry_P rofile_P art2_10(1).ua/%D0%94%D0%B D%D1%96%D0%B F %D1%80%D0%B E %D0%B F %D0%B 5%D1%82%D1%80%D0%B E %D0%B 2%D1%81%D1%8C %D0%B A#link14 tination-dnepropetrovs k/AboutDnepropetrovs k.html http://aiu.dneprs ement/page_view/Analiz-rynka-torgovoinedvizhimos ti-K ieva-i-region-14-05-2012/ http://www.php/2012-02-06-21-03-31/item/858%D1%80%D0%B 8%D1%82%D0%B 5%D0%B 9%D0%B B %D0%B 5%D1%80%D1%8B %D0%B E %D1%82%D0%B 4%D0%B 0%D1%8E %D1%82%D0%B F %D1%80%D0%B 5%D0%B 4%D0%B F %D0%B E %D1%87%D1%82%D0%B 5%D 0%B D%D0%B 8%D0%B 5%D0%B 3%D0%B E %D1%80%D0%B E %D0%B 4%D0%B 0%D0%B C %D0%B C %D0%B 8%D0%B B %D0%B B %D0%B 8%D0%B E %D0%B D%D0%B D%D0%B 8% D0%B A%D0%B 0%D0%B C 6 .comments .html /dnipropetrovs

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