Over the three years of the large-scale war, the cost of housing construction in Ukraine has increased on average by 90-115% depending on the class of the property. This is due not only to the rising prices of construction materials but also to a systemic shortage of labor and a crisis in the supply of key materials, experts from the DIM group of companies reported.
This is reported by Finway
Situation in the Construction Market
Currently, only 40-50% of workers are employed in construction compared to pre-war levels. The shortage of labor resources forces companies to raise salaries, attract contractors from other regions, and in some cases, from abroad. All of this directly affects the cost of construction. Since the beginning of the year, the cost in the Comfort+ segment has increased by 17%, reaching $850-1,000 per square meter.
Prices for Construction Materials
Prices for a number of construction materials have also risen: concrete has increased by 50%, drywall by 35-45%, plaster by 30-40%, and tiles by 50-60%. There is a significant shortage of glass, metal profiles, and glazing systems in the market, which negatively impacts the implementation of business-class projects. For Comfort and Business class projects, facade prices have increased by 25-40% over the year.
According to analysts’ forecasts, prices for key construction materials are expected to rise on average by 40-60% from the beginning of the full-scale war until May 2025. It is noted that the share of imported construction materials in the average project has effectively doubled: from 12-14% in 2021 to 25% in 2024.