Prices for construction materials have risen by 20-25% since the start of 2026, and there is a trend toward further increases; to ensure the effective operation of the “eOselya” state program, price limits must be updated, according to Sergey Pilipenko, CEO of PSG “Kovalskaya.”
In comments to the “Interfax-Ukraine” agency, he noted that the construction market has shown a gradual recovery over the past two years, with annual growth of 12-15%, indicating that businesses are adapting and that supply and demand are gradually balancing out. Currently, as in recent years, there is no shortage of construction materials. Production capacity even occasionally exceeds effective demand, so the market as a whole is balanced.
“In certain segments, situational shortages are possible due to power outages, staff shortages, or a lack of raw materials. But overall, the market fully meets the demand for construction materials. “Despite the harsh winter, our forecast for 2026 remains quite confident and optimistic: we expect growth of about 15% in volume terms across virtually all of Kovalskaya’s business segments. At the same time, prices remain a key factor influencing the market,” said Pilipenko.
According to him, the market is already feeling their significant rise due to global trends, particularly the rise in oil and fuel prices, as well as domestic economic challenges. It all began with a revision of cement prices, but since the start of the year, prices across the entire supply chain have risen by approximately 20–25%, and this is not yet the limit.
“We are currently seeing a rapid rise in prices for construction products and services due to a number of factors: rising costs for logistics, energy, and labor shortages are significantly impacting the direct cost of most products. Fluctuations in the national currency’s exchange rate are exacerbating this trend, as part of the cost structure involves imports. In any case, the impact of all these factors will be significant. By the end of the year, price increases for construction products could reach 30–35%, and some suppliers are already reporting even higher figures,” said Pilipenko.
He emphasized that this will have a significant impact on purchasing power and, in the medium term, may affect the dynamics and volume of construction: costs will rise, and consequently, the price per square meter will increase in both the residential segment and state-funded projects.
“Given this, the state program ‘eOselya’ will require a revision of its limits. Currently, the program is based on an average maximum cost of 48,000 UAH per square meter (66,000 UAH in Kyiv) and has certain restrictions on the maximum amount. However, if construction materials continue to rise in price, the limits will have to be increased by at least 20–25%. Otherwise, only a very limited number of projects will qualify for the program,” Pilipenko concluded.
The Kovalskaya Industrial and Construction Group has been operating in Ukraine’s construction market since 1956. It unites more than 20 enterprises in the fields of raw material extraction, product manufacturing, and construction. Its products are represented by the brands “Beton ot Kovalskaya,” “Avenue,” and Siltek. Kovalskaya’s enterprises operate in the Kyiv, Zhytomyr, Lviv, and Chernihiv regions. The aerated concrete plant in the Kherson region has been out of operation since the start of the occupation.
