In the face of widespread destruction of infrastructure and housing stock resulting from military aggression, the use of prefabricated construction technologies is one of the key tools for Ukraine’s reconstruction.
As noted in a market study on prefabricated construction in Ukraine, conducted jointly by Helvetas and the Housing Institute, an analysis of the sector revealed both significant opportunities and substantial barriers to its development. Ukraine’s construction sector is showing signs of recovery following a critical downturn in 2022, when construction volumes fell by 56%. Prefabricated construction technologies are becoming particularly relevant due to shorter construction timelines, energy efficiency, structural mobility, and reduced dependence on logistical and seasonal factors.
There are over 300 companies operating in the prefabricated construction sector in Ukraine, about 3% of which have foreign investment. The market is dominated by prefabricated buildings on metal and wooden frames, as well as modular solutions.
Most market operators are located in the Kyiv (142 legal entities), Lviv (27), Odesa (17), Dnipropetrovsk (17), and Kharkiv (15) regions. Construction using prefabricated technology is the primary activity for 77% of manufacturers; 23% are companies that produce construction materials and focus their efforts on sales rather than on building construction.
At the same time, operators in the western regions of Ukraine are more focused on the production of wooden-frame houses in the private residential sector, as well as on the production/construction of hotel infrastructure facilities. Companies in the central and eastern parts of the country work with various technologies and implement projects of different purposes and scales.
The study identified a significant share of the shadow economy: in the modular production segment, market operators estimate it at 30%, and in the frame construction sector—up to 80% (influenced by the specific technology used to build private properties and cash transactions).
Exports of modular homes from Ukraine significantly exceed imports, indicating the competitiveness of domestic manufacturers in the international market. The main export destinations are EU countries: Norway, the Netherlands, and Germany.
The market shows a trend toward the adoption of eco-friendly technologies, including the use of hemp and straw insulation, CLT panels, and the integration of circular economy principles.
Companies involved in the manufacture of prefabricated and modular buildings based on a wooden frame reported a 70% decline in orders in 2022; at that time, the companies’ revenue was generated by projects that had been financed in 2021. In 2023, companies began to reach 50% of 2021 levels; in 2024, the market landscape began to shift due to orders from international organizations, such as a tender for 3,000 modular homes organized by UNHCR. Overall, the task of providing housing for IDPs became the driving force behind the increase in modular building production.
The standard floor area for a frame-technology residential building is considered to be 80–100 square meters, and for a modular one—30–40 square meters.
At the same time, the development of rapid-assembly construction technologies is hampered by a number of systemic issues, in particular, the legal uncertainty regarding the status of such housing (rapid-assembly structures are most often classified as temporary structures or construction products under current legislation and are not commissioned as real estate properties). The study recommends regulating this status, as well as developing and codifying terminology related to prefabricated construction in legislation, and developing and implementing an updated classification of technologies with corresponding product codes.
Prefabricated Construction, reconstruction of Ukraine
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