In 2025, Ukraine’s construction industry is showing signs of recovery and growth, despite the ongoing challenges posed by the aftermath of military operations and economic instability. Below are the key aspects of the current state of the industry and forecasts for the near future.
Statistics and current indicators
GDP from construction: According to Trading Economics, in the fourth quarter of 2023, the GDP from construction in Ukraine reached UAH 42,540 million, which is a historical high. The forecast for the end of the first quarter of 2025 is UAH 44,029 million, with further growth to UAH 46,899 million in 2026.
Residential construction: In 2024, 1.41 million square meters of housing was built in Kyiv, accounting for 14.5% of the total volume in the country. Kyiv region is the leader with 1.95 million square meters (19.9%). Lviv region is also active with 1.06 million sq m (10.9%).
Key trends
Restoration of infrastructure: Active restoration of damaged infrastructure continues, especially in the eastern and southern regions. In Zaporizhzhia region, more than 600 residential buildings will be restored in 2025, and another 200 are planned by the end of the year.
Rising prices for construction materials: In 2024, prices for basic construction materials increased significantly due to logistical difficulties, rising energy prices, and inflation. In 2025, prices are expected to rise further, although stabilization is possible if logistics improve and local production increases.
Demand for energy-efficient and modular buildings: Ukrainians are increasingly choosing energy-efficient homes that help reduce heating and electricity costs. In 2025, houses with solar panels, insulated facades and autonomous energy supply systems will remain popular. Demand is also expected to grow for modular houses, which can be built quickly and at a relatively low cost.
Government support: The eHouse program continues to stimulate demand for housing. In 2024, the program provided UAH 14.6 billion in mortgage loans, up 66% from 2023. In 2025, funding in the amount of UAH 18 billion is planned.
Digitalization of the industry: In 2025, construction companies will be more actively implementing BIM modeling, drones for facility monitoring, and digital project management platforms, which will help reduce costs and improve the quality of work.
Main challenges
Shortage of skilled workers: Mass migration has led to a shortage of skilled workers. Companies are looking for ways to attract workers, including raising salaries and training.
Bureaucratic difficulties: The process of obtaining construction permits continues to be time-consuming. Simplifying the regulatory framework could have a positive impact on the market.
Financial risks: High inflation and hryvnia volatility may slow down the pace of construction. Companies are looking for new financing mechanisms, including cooperation with international investors.
Forecasts for 2025
Rising housing prices: According to forecasts, in 2025 the cost of housing in new buildings may increase by 15-25%, especially in large cities. This is due to rising construction costs, inflation, and high demand for new buildings.
Regional development: Kyiv, Kyiv and Lviv regions are likely to remain the leaders, but Zakarpattia and Ivano-Frankivsk regions may increase their share due to tourism and demand from internally displaced persons.
Investment and competition: Attracting investment and increasing the competitiveness of construction companies will be key factors in the development of the industry. Companies able to quickly adapt to changes and optimize processes will gain an advantage in the market.
