Despite all the difficulties and challenges of wartime, retail real estate in the Dnieper continues to attract retail chains that are seeking to expand their presence here.
At the end of 2023, the total supply of retail space in Dnipro was about 250,000-270,000 sq. m. m. At the same time, according to official statistics from the Department of Social Protection of the Population of the Dnepropetrovsk Regional Military Administration, as of mid-December, more than 466,000 displaced persons were registered in the Dnieper region. Taking into account this fact, as well as the absence of a large number of new objects, the saturation of the local market with retail space has decreased significantly.
At the same time, Violetta Makarik , director of business development at Nhood Ukraine, notes that domestic retail, responding to existing demand, has already returned to the central regions and now continues to open new retail outlets here.
Retail&Development Advisor partner, Chairman of the Association of Retailers of Ukraine Andrey Zhuk also speaks about the reserved optimism of retailers regarding development in Dnipro and the region: “In Dnipro, air raid alarms sound more often than in Kiev, but less often than in Kherson and Zaporozhye. Trade here has not stopped, but continues to develop. In general, Dnepr remains the headquarters and an important city for such powerful players as ATB, Comfy, Eva, Varus, Prostor, etc. Unfortunately, the Inditex group has not returned here yet, but local shopping and entertainment centers will adapt to the current situation (including including power outages) and continue to work. For example, the work of the Appolo shopping center was very quickly restored after a missile hit.
In the near future we can expect a purchase and sale transaction of some commercial real estate assets,” the expert notes.
The main shopping and entertainment centers of the Dnieper are located on the right bank of the city near the business center, the largest local markets, as well as railway and bus stations.
In particular, the main shopping and entertainment centers of the city that are currently operating are:
- Most City shopping mall (GBA – 124,850 sq. m, GLA: 38,400 sq. m);
- Shopping center Karavan Dnepr (GBA – 100,000 sq. m, GLA – 77,870 sq. m);
- Shopping center Dafi (GBA – 20,000 sq. m, GLA – 16,000 sq. m), which has more than 10,000 visitors/day;
- Shopping center Appolo (GBA – 35,000 sq. m, GLA – 20,000 sq. m).
“According to our colleagues and clients who work in the regions, the amount of traffic depends on the format of the shopping center and its location, the figure varies from 5,000 to 10,000-12,000 people/day,” explains Ms. Makarik.
Therefore, the Dnieper market continues to operate and develop. Thus, the ALEF Estate Development company announces the construction of the second stage of the Artel City Center in the city (GLA – 20,000 sq. m). And the ABV Estate company recently announced the construction of a new shopping center Topol Mall (GBA project – 13,500 sq. m), which will be built on the site of the old Sich cinema. It is expected that this shopping and entertainment center will be put into operation in the fourth quarter of 2025. In addition to shops, there will also be a food court and a children's entertainment center.
Entrepreneur Ruslan Shostak , co-owner of the Varus and Eva chains, also sees prospects in the development of retail real estate in Dnepr, who has already acquired a number of properties in the city and recently received permission from the Antimonopoly Committee of Ukraine to purchase the Neo Plaza shopping center.
According to Ms. Makarik, projects in Dnepr will be completed that already have funding and are at the construction stage: “Much depends on the development of events in the country. It is difficult to predict rapid and rapid development, but there is hope that local projects will slowly approach completion and move to the next stage of the real estate life cycle,” the expert notes.
Who will become the new owner of the Priozerny shopping center
One of the fairly promising large retail facilities in the Dnieper is the Priozerny shopping center, which will probably soon be put up for sale.
Let us recall that PrivatBank acquired ownership of the Priozerny shopping center in 2016 to pay off the loan debt. In 2021, the former owner of the object – Mission-1 LLC – decided to challenge the ownership of the state bank, but PrivatBank defended the legality of ownership of Priozerny in three instances: the Economic Court of the Dnepropetrovsk region, the Central Economic Court of Appeal (Dnepr) and the Supreme Court , which made a decision in favor of PrivatBank in April of this year. The decision of the Supreme Court is final and cannot be reviewed.
Currently, the Priozerny shopping center is not functioning, but it could become a very profitable investment object.
This shopping and entertainment center is one of the three largest shopping centers in the city of Dnepr in terms of rental area (more than 22,500 sq. m). The total area of the facility is more than 32,000 sq. m. m.
The Priozerny shopping center was built in 2009 in the concept of an integrated shopping and entertainment center with sports, entertainment and children's areas, as well as a spacious food court and three indoor swimming pools. Nowadays this concept is very popular, since visitors to such shopping centers can satisfy all their needs – from shopping and snacking to spending leisure time with family and friends.
In addition, the Priozerny shopping center has a very convenient location in the very center of the city (Maidan Ozerny St., 1) with extremely favorable transport links. It is located just a kilometer from the main railway station, central bus station, river port, and also next to the city’s central avenue. D. Yavornitsky.
Also near the shopping center there are public transport stops, through which more than ten routes pass from all over the city. This means that the facility is located in close proximity to huge human flows, and is convenient for visiting not only by city residents, but also by residents of surrounding settlements of the Dnepropetrovsk region.
Potential for shopping and entertainment
The Priozerny shopping center has six ground floors, as well as an underground floor where there is parking and shelter for visitors during an air raid can be arranged.
The shopping center project provides for the placement of a grocery anchor and several stores on the ground floor. The second, third and fourth floors are planned for retail rentals. These floors have an open layout, and therefore can be easily adapted to modern store concepts of both domestic and international retailers. The fifth floor of the shopping center is reserved for a sports complex and office space rental. On the last sixth floor there are three indoor swimming pools (adult – 25 m long, children's – 18 m long and for infants) with a spa area, as well as one of the largest roller skating rinks in the city.
Depending on the format and size of retail outlets, a shopping center can have from 17 to 100 tenants. In addition, the shopping center can also serve as a venue for various thematic events and activities.
The shopping center has six elevators and four escalators, a central entrance equipped with a ramp, so entry and movement around the shopping and entertainment center will be convenient for all visitors (including people with limited mobility and parents with babies). In general, the rational layout of elevators, stairs and escalators ensures convenient passage and regulation of the flow of visitors.
The shopping and entertainment complex has underground parking for 100 cars, as well as surface parking for 40 parking spaces.
In general, if the new owner manages to form a powerful tenant-mix and equip a modern food court and a high-quality sports and entertainment area and agree on a partnership with a strong food retailer, then this shopping center will become a real magnet for visitors.
Traffic and attendance
Before the full-scale invasion, the mall's average daily traffic was about 4,000 people. But, taking into account internal migration and subject to the formation of a high-quality pool of tenants, the flow of visitors to the shopping center may be higher.
A successful location in the business center of the city will ensure a stable flow of visitors during the work week, and the presence of a food court, sports and entertainment elements will guarantee high attendance during the weekend. After all, on Saturday and Sunday large groups and entire families will come to the shopping center for both shopping and entertainment.
Investments in renovation and development prospects
Professional renovation can completely modernize a shopping center. And the right architectural solutions and reformatting of some premises will likely make it possible to increase its retail space.
Taking into account the fact that, despite all the challenges of wartime, business continues to actively develop, and high-quality premises in the Dnieper are in fairly high demand among systemic retailers, the Priozerny shopping center should be of interest to many potential investors who are interested in purchasing large retail properties.
