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.
In January-March 2025, Raiffeisen Bank (Kyiv) received UAH 2.21 billion in net profit, which is 12.3% less than in the same period of 2024, when it amounted to UAH 2.52 billion, according to the financial institution’s website.
It is noted that pre-tax profit decreased by 13.3% to UAH 2.91 billion, while net interest income increased by 3.9% to UAH 4.45 billion, and net fee and commission income decreased by 9.4% to UAH 0.45 billion.
It is noted that the share of interest income from certificates of deposit and income from interest rate swap agreements with the NBU in the first quarter of this year decreased to 13% from 21% in the first quarter of last year, while the share of government bonds increased to 21% from 15%.
According to the report, the decrease in net profit is partly due to an increase in employee benefits expenses to UAH 1.33 billion from UAH 1.10 billion in the first quarter of 2024, an increase in depreciation and amortization expenses to UAH 0.41 billion from UAH 0.32 billion and other administrative and operating expenses to UAH 0.69 billion from UAH 0.63 billion, as well as a decrease in net profit from foreign exchange operations to UAH 0.28 billion from UAH 0.40 billion.
At the same time, net loss from revaluation of foreign currency decreased to UAH 0.12 billion from UAH 0.15 billion, and net gain from operations with financial instruments at fair value increased to UAH 0.27 billion from UAH 0.21 billion.
In the first quarter of 2025, Raiffeisen Bank’s total assets increased by 4.1% to UAH 227.0 billion, and equity increased by 8.7% to UAH 30.43 billion.
It is also noted that on April 22, 2025, the bank remotely held an annual meeting of shareholders, at which it was decided to allocate UAH 0.7 million of the profit for 2024 to pay dividends to the holders of the bank’s preferred shares, part of the profit in the amount of UAH 2.14 billion to the bank’s reserve fund, and the remaining UAH 2.14 billion to be left undistributed and sent to the accounts of retained earnings of previous years.
The bank’s strategy for 2025 envisages business development in a highly competitive market amid the war while maintaining a universal digital model. Raiffeisen’s main focuses are digitalization of services, lending growth, customer retention and attraction, operational efficiency and risk management. In particular, the bank will continue to modernize its technological infrastructure and develop its ESG activities. The priorities will include: expanding lending to individuals and businesses, especially under the 5-7-9% programs, improving the digital user experience, diversifying customer acquisition channels, and cooperating with international financial institutions.
According to the National Bank of Ukraine, at the beginning of the year, Raiffeisen Bank ranked 4th in terms of total assets (UAH 238.9 billion) among 61 banks in the country.
Alliance Novobud has won the prestigious Ukrainian Business Award for the third year in a row, receiving the title of BUSINESS OF THE YEAR 2025. This recognition is a testament to the stability and professionalism of the developer’s team, which continues to implement large-scale projects even in the face of war and economic instability.
Since resuming operations in April 2022, Alliance Novobud has been actively working on all of its construction sites. In particular, over the past year, the company has completed its first project in the capital, the Illinsky House club house, commissioned a residential complex in Brovary, Lavandovy, and is continuing preparatory work for the start of sales of a new building in the legendary Lisovy Kvartal project.
The Ukrainian Business Award is an annual award presented to successful companies and business leaders in Ukraine for achievements in various fields, such as finance, investment, marketing, development, innovation, and more. UBA has a significant impact on the development of the business environment in Ukraine and contributes to increasing the level of competition and quality of business in the country.
Alliance Novobud is a reliable developer of progressive formation, which has been operating in the construction market of Kyiv and the region for over 18 years. The company designs and builds meaningful spaces for living, recreation, and self-realization.
Receiving the BUSINESS OF THE YEAR 2025 award is confirmation of the high level of professionalism of the Alliance Novobud team and its ability to achieve high results despite all challenges. The company continues to bring to life the dream of every Ukrainian — the dream of owning a high-quality home.
Alliance Novobud, Illinsky House, Lavender, Ukrainian Business Award
Kormotech Group aims to enter the top 20 chains in each of its priority markets and increase the share of online sales to 15% in the next three years.
These plans were announced by Yuriy Bykoriz, Managing Director of Kormotech’s Central and Eastern Europe region, in an interview withInterfax Ukraine.
“We want to have (the share of e-commerce) at least 15% by 2028 in the countries of Central and Eastern Europe. We see a resource for rapid growth because the share of sales in CEE countries via the Internet is growing and e-commerce is showing higher growth rates than other channels,” Bykoriz emphasized.
He said that there are separate teams in the commercial structure in Europe – one responsible for the development of supermarket chains and one responsible for the development of online sales.
“Currently, the direction of online sales is being developed by Stefan Roche, a German, whom we chose for this position because of his experience, from the largest European pet store chain, where he developed e-commerce. Now he is working with us and we are already present in key markets. For example, in Poland, we are on Allegro, in Romania – on eMag, and our brands are also represented on Amazon. Over the next three years, our goal is to enter the top 20 networks in each of the priority markets,” said Bykoriz.
The peak period of online sales is the sales period.
“November, the so-called Black Friday, is the peak. Interestingly, these are different dates in Europe. For example, in Romania, these promotions take place in early November, while in Poland and the Baltic states they are closer to the end of November. Therefore, in general, November in Europe brings us revenues of up to EUR 200 thousand, and the figure is growing,” he said.
Kormotech is a global family-owned company with Ukrainian roots that has been producing high-quality food for cats and dogs under the Optimeal, Delickcious, Club 4 Paws, Woof! My Love. The company has production facilities in Ukraine and the EU. The product range includes more than 650 items. Kormotech is a leader in Ukraine, one of the TOP-50 global pet food producers and TOP-20 most dynamic pet food brands. Kormotech sells products of its own brands and its partners’ own brands to 46 countries.
The Kormotech Group of companies ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, last year the group of companies sold 83 thousand tons of dry and wet diets for cats and dogs, which is almost 7.5% more than in 2023.
The residential real estate market in Montenegro in 2025 is showing steady growth due to high demand from foreign investors, limited supply, and positive economic expectations related to the country’s possible accession to the European Union in 2026.
Current market situation
According to the Tranio portal, the average price of apartments in Montenegro is around €3,800 per square meter, and houses are around €3,600 per square meter. However, prices vary significantly depending on the region and type of property.
Coastal regions
Tivat: apartment prices range from €3,500 to €5,500 per square meter, especially in areas adjacent to Porto Montenegro.
Budva: the cost per square meter in new buildings ranges from €3,000 to €4,200, and in finished properties — from €2,800 to €3,800.
Kotor: housing prices range from €2,400 to €3,800 per square meter.
Herceg Novi: the cost per square meter reaches €5,800.
Other regions
Bar: house prices average €1,300 per square meter, making this region more affordable for investors.
Podgorica: in the country’s capital, apartments start at €800 per square meter, and houses start at €1,000 per square meter.
Factors influencing price growth
High demand from foreign investors: Montenegro attracts buyers from Europe, Russia, and the Middle East thanks to its favorable tax policy and attractive geographical location.
Limited supply: The construction of new properties is not keeping pace with growing demand, especially in coastal areas, leading to a housing shortage. Economic growth and prospects for EU accession: Montenegro’s expected accession to the European Union makes the region more stable for long-term investment, which has a positive impact on the real estate market.
Forecast for 2026
Experts predict that real estate prices in Montenegro will continue to rise in 2026. In the most sought-after regions, such as Budva and Tivat, growth could reach 15%. This makes investing in Montenegrin real estate promising, especially given the limited supply and stable demand.
In 2024, Nova Poshta, the leader of express shipments in Ukraine, increased its revenue by 22% to UAH 44.77 billion, while its net profit decreased by 36.9% to UAH 2.5 billion, according to its financial results, which were confirmed by the audit company Baker Tilly Ukraine LLC and published in the SMIDA information disclosure system.
“Despite the challenges of wartime and the shelling of branches and terminals, Nova Poshta operated as usual in 2024. The number of shipments in 2024 exceeded 480 million parcels and cargoes, or +16% year-on-year. The NPS (Consumer Loyalty Index) level for 2024 for the company was 80.8%,” the report says.
It is noted that due to the strategy of increasing customer accessibility points, the number of branches, delivery points and post offices in Ukraine amounted to more than 37 thousand at the end of December 2024.
As of December 31, 2024, the ratio of own and agency branches was 1,891 and 11,317, respectively, compared to 1,847 and 9,614 as of December 31, 2023.
The average number of full-time employees of the company, including part-time employees and those on maternity leave, was 27,509 at the end of 2024 compared to 26,327 at the end of 2023.
In 2024, despite the military aggression, Nova Poshta resumed investments in innovation, launching and testing of new technologies and services, amounting to UAH 7.3 billion, the report says.
According to information on SMIDA, the consolidated income of the group of companies, which includes the parent company Nova Poshta LLC and its subsidiaries, including NovaPay, NovaPay PL, NP Digital, NOVA Digital Sp. z o.o. (Poland), Nova-Energy, Novobox, Nova Place, Nova Post Europe, subsidiaries in Lithuania, Moldova, Poland, Slovakia, Hungary, Romania, Estonia, Latvia, Czech Republic, Canada, the United Kingdom, France, Italy, Poland, Belgium, Spain, and the Netherlands, in 2024 increased by 24% to UAH 54.2 billion. Consolidated profit decreased by 10.8% to UAH 3.81 billion.
Nova Poshta’s core business remains the express delivery of documents, parcels and palletized bulky cargo. The company is the leader in express delivery in Ukraine. Its ultimate beneficial owners are Volodymyr Popereshnyuk and Viacheslav Klymov.
