Experts from Kharkiv-based Avantazh Investing and Construction Company have reported that lease rates of offices and prices of offices denominated in United States dollars stabilized in Kharkiv in May.

"The main trend of May 2009 is the stabilization of lease rates in Kharkiv business real estate. In May, a fall was registered only in special cases. This concerned several B class offices, where the prices of one m2 decreased by USD1 or 5%," reads a company press release, referring to a survey of the office real estate market in the city conducted by its specialists.

The leader of the corporation's marketing service, Valeriya Hulevska, mentioned that this trend is explained by the replacement of the winter panic of landlords to confidence that the market has bottomed out.

"The May the strengthening of the hryvnia and the decrease in the number of negative forecasts for the country's economic development allowed prices to stabilize not only in the leasing segment, but also in the office sale segment," she added.

According to the company, lease rates were grown only on offices in four business centers out of 19 objects where offices are leased.

"In the sales field, the situation is also pretty stable, cases of price cuts are isolated. Prices were divided in three objects out of 15 by USD120 per m2 or by 9.11% on average," reads the report.

Avantazh noted that at present, the lease rate range in Kharkiv is from USD6.6 to USD25 per m2, in particular, lease rates on A class premises are USD25 per m2 (April 2009 - USD25 per m2), that for B class = USD10-20 (USD10-USD21), that for B class - USD6.6-USD19.65 (USD6.5-USD19), and that for C class - USD3.9-USD11.6 (USD4-USD11.5).

The prices of offices differ from USD786 to USD2,500 per m2, and in particular, the prices for A class offices are estimated at USD970-USD1,035 per m2, that for B+ class - USD786-USD1,573 and that for B class - USD917- USD2,500.