In recent years, the cost of construction and renovation work in Ukraine has shown a steady increase. Compared to 2019, the cost of residential construction has nearly doubled. This trend is explained by a number of economic and social factors affecting the industry, including rising material costs, a shortage of skilled labor, and logistical challenges.
This is reported by Finway
Increase in Production Costs and Renovation Work
Over the past two years, the average cost of constructing one square meter of housing has increased by 20–30%. As emphasized by the President of the Confederation of Builders of Ukraine, Lev Partskhaladze, the cost of renovation work in apartments and private houses is also rising. According to market participants, over the past few years, renovation prices have doubled.
“In recent years, the cost of residential construction in Ukraine has significantly increased. In just the last two years, the average cost of constructing one square meter has risen by 20–30%. When compared to 2019, the cost of construction has nearly doubled,” said Partskhaladze.
Experts explain this trend by the increase in prices for construction materials, labor costs due to the shortage of skilled workers, as well as logistics expenses and the implementation of new technologies. Additional pressure on prices is created by the war, inflation, disruptions in energy supply, and difficulties in sourcing materials, particularly imported raw materials. Delivery problems and rising fuel costs further increase overall expenses.
Labor Shortage and Regional Features
One of the biggest problems in the construction industry remains the lack of qualified workers. Due to mobilization, migration, and demographic changes, there is a severe shortage of specialists in all fields. In some areas, the shortage of labor reaches 60–70%, and many companies consider this issue to be critical for the sector.
According to Partskhaladze, about 70% of construction specialists are currently on the front lines. In the next 5–7 years, Ukraine may face a shortage of about 3 million workers in the industry. Moreover, the loss of qualifications due to prolonged breaks in professional activity only complicates the situation. A proposed solution is short-term training programs that will allow for quick mastery of in-demand specialties and facilitate the reintegration of veterans into civilian life.
According to the Ministry of Community Development, Territories, and Infrastructure of Ukraine, as of early April 2025, the average indirect cost of constructing one square meter of total apartment area was over 24,685 UAH. The most expensive housing is being built in the capital — in Kyiv, the price of one square meter reached 28,850 UAH. High figures have also been recorded in the Kharkiv (25,945 UAH), Donetsk (25,928 UAH), Chernihiv (24,715 UAH), and Kyiv (24,654 UAH) regions.
The lowest construction costs are observed in the Kirovohrad region — 20,980 UAH per square meter, as well as in the Transcarpathian (21,429 UAH) and Zhytomyr (21,699 UAH) regions.