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.
The United States has imposed sanctions against two Russian oil companies – Gazprom Neft and Surgutneftegaz, OFAC (Office of Foreign Assets Control, a division of the U.S. Department of the Treasury responsible for sanctions enforcement) announced on Friday. OFAC issued traditional in such cases licenses to curtail operations with “Gazprom Neft” and “Surgutneftegaz” and withdraw from their securities for a period until February 27, 2025.
A whole group of subsidiaries of Gazprom Neft and Surgutneftegaz are also under sanctions from now on.
The SDN List also includes the Serbian subsidiary of Gazprom Neft – NIS, about the risk of U.S. sanctions against which Serbian President Aleksandar Vucic spoke at the end of December. In this regard, Belgrade has already started negotiations with interested parties, and one of the solutions is to reduce the Russian stake in NIS to less than 50%, he said. NIS is the only company in Serbia engaged in exploration and production of hydrocarbons, it also owns a large refinery in Pančevo. The company dominates the Serbian oil products market, and the NIS network of gas stations is also present in Bosnia and Herzegovina, Bulgaria and Romania, totaling more than 400 stations. Gazprom Neft currently owns 50% of NIS, with Gazprom holding 6.15%. Another 29.87% of shares are owned by Serbia, the rest by minority shareholders.
Ukraine’s grain harvest in 2025-2026 marketing year will be at the level of 55-65 million tons, grain exports – 40-50 million tons, and oilseeds harvest will also exceed last year’s and is expected to be at the level of 24 million tons, predicts Sergiy Feofilov, general director of information and analytical agency UkrAgroConsult.
“Rapeseed and sunflower will remain the most marginal, while corn will show stable margin growth due to the recovery of demand,” he explained in an interview published on the agency’s website.
The expert believes that in 2025 agrarians will emphasize the development of processing and increase exports of value-added products (oil, meal, flour, fodder), which will reduce dependence on logistics costs and increase revenues.
According to Feofilov, the focus of trade will shift to North Africa, Asia and the Middle East, where demand for grains and oilseeds is growing, and Ukraine can respond to these challenges by expanding its markets.
The head of “UkrAgroConsult” expressed confidence that this year the key issues for Ukrainian farmers will remain the increase in the share of high value-added products in exports, trends in the growth of lending to farms, adaptation of agricultural technologies to climate change, rising prices for resources and increasing number of sudden requests.
The issues of security, energy independence, increasing the profitability of farmers, adaptation to environmental standards, harmonization of Ukrainian legislation to European legislation, international cooperation, restoration and improvement of logistics chains will also be relevant, summarized Feofilov.
Inflation in Ukraine, which fell to 5.1% in 2023 after jumping to 26.6% a year earlier, rose to 12.0% in 2024, the State Statistics Service (Ukrstat) reported on Friday.
According to its data, consumer price growth in the country in December 2024 slowed to 1.4% from 1.9% in November, 1.8% in October and 1.5% in September.
The statistics agency recalled that in December 2023, consumer prices rose by 0.7%, so in annual terms, inflation in December 2024 increased to 12% from 11.2% in November, 9.7% in October, and 8.6% in September.
It is indicated that in December 2024, core inflation rose to 1.3% from 1.2% in November, returning to the level of October. Taking into account that in December 2023 it was zero, in annual terms, core inflation in 2024 rose to 10.7% from 4.9% in 2023, while in 2022 it was 22.6%.
At the end of October, the National Bank of Ukraine downgraded its inflation forecast for 2024 from 8.5% to 9.7%, and for 2025 from 6.6% to 6.9%.
The Ministry of Economy of Ukraine forecasted inflation at 9.5% in 2024 and expects it to be at the same level in 2025.
In 2024, imports of passenger cars, including cargo and passenger vans and racing cars (UKT FEA code 8703), increased by 8% in monetary terms compared to 2023, to $4.385 billion.
According to customs statistics released by the State Customs Service of Ukraine, the top three countries from which cars were imported the most were the United States, Germany and Japan, as in the previous year, while imports of cars from the United States increased by 13.2% to $817.9 million, and their share in the structure of car imports was 18.65% compared to 17.78% a year earlier.
Cars from Germany, whose share in the structure of imports decreased by 0.32 percentage points to 15.56%, were imported for $682.16 million (5.8% more), and the share of cars from Japan decreased to 11.3% from 13.9% a year earlier – they were imported for $495.71 million (12% less).
Imports of passenger cars from other countries amounted to $2.389 billion (54.5% share), while a year earlier it was $2.131 billion (52.47%).
According to the statistics of the State Customs Service, in December, imports of passenger vehicles to Ukraine amounted to $389.67 million, which is 3.5% more than in December 2023.
At the same time, last year Ukraine exported such vehicles for $10.1 million, while a year earlier – for $27.9 million, while most often they were supplied to Canada (for $1.82 million), the United States ($1.79 million) and Germany ($1.54 million), while in 2023 – to Georgia, the UAE and Germany.
As reported, in 2024, a total of $25 billion worth of machinery, equipment, and transport was imported to Ukraine, compared to $19.8 billion a year earlier, and $3.5 billion ($2.9 billion) worth of exports.
Ukraine in 2024 increased imports of coal and anthracite (HS code 2701) in 2.7 times (by 1 million 145.951 thousand tons) compared to 2023 – up to 1 million 812.592 thousand tons.
According to the State Customs Service, coal was imported for $402.219 million, which is 2.2 times more than in 2023 ($185.378 million).
From the United States came coal worth $98.868 million (share – 24.58%), Australia – $97.794 million (24.31%), Czech Republic – $69.527 million (17.29%), other countries – $136.03 million (33.82%).
Ukraine’s coal exports in 2024 decreased 1.7 times (by 273.353 thousand tons) – to 397.324 thousand tons, in value terms it fell 4.7 times (by $136.325 million) – to $36.366 million,
Including coal shipped to Swedish counterparties for $14.776 mln, to Indian counterparties for $10.421 mln, to Italian counterparties for $5.487 mln, and to others for $5.682 mln.
As reported, Ukraine in 2022 reduced imports of coal and anthracite in 4.2 times (by 14 million 932.904 thousand tons) compared to 2021 – to 4 million 630.144 thousand tons. Coal was imported for $1 billion 179.113 million, which is 2.1 times less than in 2021 ($2 billion 488.698 million).
