The cost of construction in Ukraine has risen by 70% since the onset of the full-scale war. According to Andriy Ozeichuk, director of the engineering and construction company Rauta, prices for construction materials and services increased by 24% in 2024 alone, significantly impacting the budgets of new projects.
This is reported by Business • Media
Market Growth and Demand for Housing
Last year, the volume of the construction market in Ukraine grew by 20% compared to the previous year, reaching approximately 200 billion hryvnias (about 4.6 billion euros). The demand for new housing increased by 7%, made possible by the state program “eOselya.” The largest investments in the commercial real estate sector were directed towards the construction of warehouse, manufacturing, and retail facilities. At the same time, the segment of reconstruction and strengthening the protection of critical infrastructure accounted for about 20% of the entire market.
Forecast for Investments in Primary Housing
Iryna Mikhalova, marketing director of the development company Alliance Novobud, believes that in the next 2–3 years, the volume of investments in primary housing in Ukraine will increase annually by up to 15%.
“The market has adapted to the realities of wartime, and key investors – Ukrainians, and for the business class – foreigners, are increasingly choosing new developments as a tool for preserving and multiplying capital. Demand for profitable real estate and business-class properties is also on the rise,” noted Mikhalova.
According to forecasts from experts at Alliance Novobud, there may soon be a shortage of ready housing in the business and comfort class segments in Kyiv. This creates additional incentives for investing in new developments and enhances the significance of the primary real estate market in the context of a wartime economy.