Since the onset of the full-scale war, construction costs in Ukraine have risen by 70%. This data was presented by Andriy Ozeichuk, the director of the engineering and construction company Rauta. He noted that in just 2024, expenses for construction materials and services increased by 24%, significantly impacting the cost structure of new projects.
This is reported by Finway
Market Dynamics and Real Estate Investments
According to the expert, last year the construction sector in Ukraine grew by 20% compared to the previous year, reaching a volume of approximately 200 billion hryvnias (4.6 billion euros). The demand for new housing increased by 7%, made possible by the state program “eOselya”. The largest volumes of investment in commercial real estate were directed towards warehouse, industrial, and retail properties. A separate segment of the market—reconstruction and strengthening of critical infrastructure—accounted for about 20% of the total volume of construction work.
Investment Growth Forecast and Housing Shortage
Irina Mikhailova, the marketing director of Alliance Novobud, predicts that in the next 2–3 years, investments in primary housing in Ukraine will grow by 15% annually.
“The market has adapted to the realities of wartime, and key investors—Ukrainians, and for the business class—foreigners, are increasingly choosing new buildings as a tool for preserving and increasing capital. Demand for profitable real estate and business-class properties is also on the rise,” Mikhailova noted.
According to estimates by Alliance Novobud experts, there may soon be a shortage of ready housing in the business and comfort class segments in Kyiv. This is due to the increased demand for quality housing that meets modern standards and safety requirements.