In 2024, the Ukrainian construction market in monetary terms increased by 6% compared to 2023 and amounted to approximately UAH 170 billion (€3.9 billion).
The main segments for investment in commercial real estate were warehousing and retail facilities. Kyiv and Lviv regions remain the most attractive for the construction of new buildings, as they have a large population and good location relative to major transport routes. In 2024, the total area of new commercial projects increased by 65% compared to 2023. The warehouse segment grew by 111% and the retail segment by 22%.
The vacancy rate in the office real estate market of about 25% has forced developers to slow down or stop the development of new projects in this segment. In Kyiv, most of the new business centers are facilities that were started before the full-scale invasion. In Lviv, despite the increased demand for offices, 75% less new office space was commissioned in 2024 than a year earlier.
In the commercial construction market, the hotel real estate segment showed the highest growth, up 182%. This is primarily due to the active development of resort real estate in western Ukraine.
The restoration and protection of critical infrastructure accounts for about 20% of the construction market.
Demand in the primary residential real estate market increased by 12% in 2024. One of the important factors behind this was the introduction of the eHouse program, which accounted for a third of loans to new buildings.
In 2024, the demand for solar power plants on the roofs of commercial buildings and roofs of private cottages increased significantly.
Between 2019 and 2024, the cost of construction in Ukraine doubled. At the same time, the cost of construction materials and services increased by about 24% over the past year.
There is a growing shortage of skilled construction workers in blue-collar occupations. For some positions, companies have to look for specialists for several months and sometimes train employees themselves.
The shortage of skilled workers and high inflation are forcing employers to raise salaries and introduce new employee loyalty programs. On average, salaries in the construction industry grew by 15% over the year, which also contributed to the growth in construction costs.
Construction companies are actively recruiting pensioners and women to perform work that does not require significant physical activity: construction equipment operators, drivers, welders, etc.
The staff shortage encourages Ukrainian companies to consider hiring construction specialists from Asia and Africa.
On January 1, 2023, the Law of Ukraine “On the Placing of Construction Products on the Market” (EU Regulation 305/2011) came into force, introducing a new market surveillance system to ensure the quality of construction materials. 2025 will be the last year when the old and new regulations will be in force in the construction sector. Starting from 1 January 2026, suppliers of construction products covered by this law will be required to draw up declarations of performance and register them in the Unified State Electronic System in the field of construction.
Starting from August 2024, amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 314 allow foreign companies to construct facilities of consequence class CC2 and CC3 during martial law by submitting a declaration to the licensing authority. This opens up wide opportunities for foreign contractors to implement construction projects in Ukraine, especially those financed by international institutions.
For 2025, the Ministry of Communities and Territories Development of Ukraine has planned to update 7 DBNs and develop 80 standards aimed at implementing processes to optimize design and construction, including BIM technologies, as well as removing barriers to the application of Eurocodes.
