Commercial Rent Rates for HoReCa in Ukraine in 2026: Kyiv Is Only 50% More Expensive Than Lviv and Dnipro
As of late 2025, the average rental rate for retail premises in Ukraine rose to $11.4–11.9 per m²/month (up from $10.3 in December 2024) — roughly +16% year over year. Kyiv remains the most expensive market, but its gap with Lviv and Dnipro has narrowed to about 50% (it used to be 1.5x or more). Kharkiv shows slow recovery: $7.6 per m² in May 2025, up from $6.9 at the end of 2024. These figures are a starting point for any P&L calculation for a future venue, not a benchmark for a final decision: within each city, the spread by district and floor reaches 2–3 times.
What "average rates" actually mean for a venue owner
When an investor sees a “$11 per m²” figure in a report, the first thing to do is forget it as a working metric for their own project. The average rate aggregates kiosks, small retail pavilions, shopping centers, and standalone buildings — and these represent entirely different rental economics.
According to the “Interactive Report” analytical tool from GIS Uvekon, the highest rate per meter — over $21 — belongs precisely to small formats: kiosks, roll-up stalls, and “to go” points. The reason is simple: a small total area allows for a higher rate per meter while keeping the absolute rent sum reasonable. Mid-sized premises (100–500 m²), which is where a typical restaurant or café for 40–80 seats falls, rent cheaper per meter — $10–10.5. Large halls (500–1,000 m²) run around $10.2, and anything over 1,000 m² drops to $9.5.
A less obvious point rarely captured in general market overviews: this inverse relationship — smaller area, higher rate per meter — works against owners of small family-run venues. When an investor calculates P&L for a 60–90 m² format, they automatically land in the most expensive per-meter segment of the market, even if the absolute rent sum looks acceptable at the negotiation stage.
Kyiv: the gap with Lviv and Dnipro is narrowing
The capital has traditionally set the price benchmark for the whole country. But 2025 changed the actual structure of that gap: if rent in Kyiv was 1.5x higher than the nearest region at the end of 2024, by the end of 2025 Kyiv is roughly 50% more expensive than Lviv or Dnipro. This means regional centers are gradually ceasing to be a “cheap alternative” for chain operators — the gap in cost per m² is shrinking faster than the difference in purchasing power between these cities’ populations.
The practical takeaway for an investor choosing between opening a location in Kyiv versus a regional center: rent savings no longer offset the difference in foot traffic and average check the way they did two to three years ago. The payback model should be recalculated quarterly, not based on data even six months old.
Ground-floor street retail — and why it isn't always the better deal
Over 95% of street retail listings in Kyiv as of November 2025 are on ground floors — confirming the obvious thesis that foot traffic carries a premium. The average ground-floor rate was around $11.9 per m² (up from ~$10.1 in December 2024, i.e. +17.5% year over year). Notably, the difference between standalone buildings and units built into residential complexes has nearly disappeared — up to $11.8 per m² for built-in formats. Tenants are actively taking up basement and ground-floor spaces in new residential developments, and property owners are pricing that in.
For the restaurant business, this means competing for the same locations not only with other food venues, but also with retail, pharmacies, and bank branches — anyone who values traffic over format.
Lviv: the city center costs several times more than residential districts
The Lviv market shows the widest intra-city spread among all cities studied. In the central Halytskyi district, ground-floor street retail in the city center is listed from $2,500 per m² (this is a sale price, not a rental rate — it’s important not to confuse the two different metrics when reading aggregated reports). Individual top locations — Rynok Square, Svobody Avenue — reach $3,000 per m².
At the same time, according to general market estimates, a commercial unit in Lviv’s residential districts on busy streets can rent for $10–15 per m², while a comparable object in the center goes for $20–30 per m². A 2–3x difference within a single city is exactly the parameter franchise owners need to build into their model at the format-selection stage: Lviv’s center suits an image-driven venue with a high average check, while residential districts favor a quick-service format with high seat turnover.
Interestingly, Lviv’s retail rental rates barely moved from December 2024 through April 2025, while the office segment grew by +12%. This suggests retail and HoReCa in the city have already gone through their active price-rebound phase and entered a more stable one — a good moment to negotiate a fixed rate for a longer term.
Odesa: warehouse space is getting more expensive faster than retail
The Odesa market shows an uneven picture over 2025. Commercial real estate and land prices have mostly declined or held flat, while the residential segment grew 10–15%. Notably, the warehouse rental rate over the first nine months of 2025 rose from $3.10 to $3.78 per m² (+22%) — faster than retail space.
This is directly relevant for HoReCa operators: venues with their own logistics (delivery, dark kitchens, catering) will feel the warehouse-side cost increase before the front-of-house rental component. Store sales across Odesa’s districts also show a mixed picture: the Kyivskyi district is unchanged, Prymorskyi and Khadzhybeiskyi saw a slight decline (2–4%), while Peresypskyi grew 27% due to several favorable lots coming onto the market. That district deserves particular attention for anyone looking for a lower entry threshold.
Kharkiv: a cautious recovery after the 2022–2023 collapse
Kharkiv’s retail real estate market suffered perhaps the biggest shock of any regional center: in 2022–2023, a significant share of retail locations were destroyed or closed due to a lack of customers, and only in late 2024 did the first signs of stabilization appear.
As of May 2025, retail rent in Kharkiv averages $7.6 per m²/month — roughly 10% higher than at the end of 2024 ($6.9). But that average conceals significant polarization: in central districts, landlords were able to raise rates as customers returned, while on the outskirts landlords cut prices to fill empty storefronts at all.
Practical takeaway: Kharkiv today is a tenant’s market in the vast majority of districts, except for a handful of central locations where competition for space has already recovered. This creates a window of opportunity for those willing to operate under elevated operational uncertainty (power outages, foot-traffic fluctuations from air-raid alerts) in exchange for a substantially lower rent component of overall costs.
Dnipro: office segment declining, retail holding steady
In Dnipro, between December 2024 and May 2025, the weighted average office real estate price fell roughly 5% (from $997 to $951 per m² for sale), reflecting broader investor caution during the war. Retail, by contrast, looks more stable — which is why Dnipro is cited alongside Lviv in the November 2025 retail market summary as the benchmark against which Kyiv is roughly 50% more expensive.
For a restaurant investor, this means Dnipro currently sits in the same price bracket as Lviv, though the demand profile in the two cities differs substantially: in Lviv, tourism and local premium foot traffic in the center drive demand, while in Dnipro it’s the recovery of business activity and the return of a solvent population.
Ivano-Frankivsk: the western region holds rates at pre-crisis levels
Ivano-Frankivsk, alongside Lviv, belongs to the western region, where high demand for short-term leases and a shortage of new quality space have fixed commercial rental rates at $8–10 per m²/month in certain periods of 2024–2025. That’s effectively a return to pre-crisis levels (for comparison, the typical pre-war rate was $6–7 per m²), a level already reached by summer 2024.
An important nuance for anyone considering Ivano-Frankivsk as a “cheaper alternative” to Lviv: the difference in rental cost between the two cities is smaller than the difference in scale and tourist flow. This should be factored into the payback model — a lower rental rate isn’t always proportionally offset by a lower average check.
How to factor this into your P&L: three points often missed
- Rate per meter is not the same as rate per seat. A 60–90 m² format falls into the most expensive per-meter price segment (as shown above with national-level data), so unit rental cost should be calculated per seat, or per square meter of dining floor excluding back-of-house space.
- HACCP requirements directly affect usable rented area. A unit that’s formally 80 m² often yields only 45–55 m² of usable dining space once you carve out storage for raw materials, a dishwashing area, a staff restroom separate from the guest one, and evacuation routes. The advertised per-m² rate should always be recalculated against this adjusted area — otherwise the payback model will systematically understate the real cost per square meter of guest space.
- Backup power (generator, UPS) has become part of the price, not an optional extra. Most current commercial listings for food-service premises now explicitly note the presence of automatic transfer switches, a generator, or an inverter system — and landlords price that in. When comparing two units at the same rate per meter, check whether backup power is included in that price or is a hidden additional cost the tenant will have to bear separately.
Regional takeaway
The biggest mistake made by investors scaling a chain across several cities at once is transferring one city’s payback model to another without accounting for the structure of the gap. The difference between Kyiv and regional centers is narrowing (to roughly 50%), while within each city the spread by district and format can exceed that difference several times over. So the decision of where to open the next location should be based not on a city’s average rate, but on the rate for a specific district, floor, and size category — those parameters, not the city name, determine the real rental component of your P&L.
Data sources: GIS Uvekon analytical reports based on the “Interactive Report” tool (December 2024 – November 2025) covering retail real estate markets in Ukraine, Lviv, Odesa, Kharkiv, and Dnipro; aggregated data from commercial real estate portals (DIM.RIA, 100realty.ua, LUN, AVISO.ua) as of 2026.
This material is based on publicly available analytical sources and is intended for indicative market assessment. Before making an investment decision, it is recommended to obtain a current commercial offer from the property owner and consult a local broker specializing in the specific city.
Author: Ruslan, Independent HoReCa Analyst, Expert Technologist at eeat.com.ua
