The number of homes under construction in the U.S. in February rose 9.8 percent from the previous month to 1.45 million at an annualized rate, a five-month high, according to the country’s Commerce Department.
According to the revised data, the number of new buildings in January was 1.321 million, rather than the 1.309 million previously announced. Despite the revision, the January figure was the lowest since June 2020.
Experts had predicted an increase in the number of new buildings in February to 1.31 million from the previously announced January level, according to Trading Economics.
The number of new buildings was down 18.4 percent from February 2022.
The number of new home construction permits issued in the U.S. in February increased 13.8% to 1.524 million on an annualized basis from 1.339 million a month earlier. Analysts’ consensus forecast suggested that the number of permits in February would be 1.34 million.
Construction of single-family homes rose 1.1% last month, to 830,000. Permits for such homes rose 7.6%, to 777,000.
In the case of apartment buildings (including apartments and condominiums), a more volatile market segment, there was a 24.1% increase, to 608,000. The number of permits for construction of apartment buildings increased 21.1%, to 747,000.
More than 70% of construction sites in Kiev, Lviv and Odessa continue to work, prices for the year increased in the capital by 36.1%, in Odessa by 48.4%, in Lviv by 82.7%, said the founder of M4U Vladimir Danilenko to the agency “Interfax-Ukraine”.
“During the year of war in Ukraine, real estate markets in most major cities continued to grow. The cost per square meter rose during the year in line with rising production costs, the devaluation of the hryvnia and the distance from the front line. In October 2022 the tendency has changed: the prices in Lviv continue to grow, in Kiev and Odessa have stabilized”, – said Danylenko.
According to M4U, the number of active construction in the capital today is 83.7% of the beginning of February 2022 – 185 of 221 housing estates.
At the beginning of February 2023 the average price per square meter in new buildings in Kiev was 61 thousand 234 UAH. This is 36.1% higher than it was before the Russian invasion of Ukraine, but 1.2% lower than in January. Prices were rising most actively in the summer, when most sales departments resumed their work and when the official dollar exchange rate went up. From June to September the average cost per square meter increased by 26.7%.
“Today the pace of construction work is much lower than before the war, so it does not make sense and possible for developers to often recalculate the cost of construction. Market factors for price increases are also absent,” Danilenko explains.
According to the study of M4U, the largest increase in the cost per square meter was noted in the segments of elite (+46.1%) and economy (+44.3%). The price increase in popular among buyers classes of comfort and business was 35.5% and 34.4%, respectively.
At the beginning of February 2023 the majority of real estate offers are concentrated in the price range from 34 to 54 thousand UAH/sq. m, comfort class objects prevail among them.
Traditionally the biggest number of actively built and sold new buildings, as well as apartment offers, is in Holosiivskyi district of Kiev. More than a half of them (16 out of 29 Residential Complexes) are the objects of comfort class. The second largest volume of construction is in Pechersk district, where 15 out of 26 housing estates are positioned in business class, the rest – the elite. In Shevchenkivskyi district of Kiev 24 residential complexes are under construction, most of which belong to business class. Fewer new homes are being built in Obolonskyi (11 LC) and Desnianskyi (10 LC) districts. At the same time the supply of new apartments in Desniansky district is twice as much as in Obolonsky, there is more housing in the economy class housing.
In the Kiev region at the beginning of February 2023, 204 out of 263 construction sites resumed their work a year ago (77.5%). A square meter in the suburbs of the capital on average has risen by 34.1%, to 31 844 UAH. As in the capital, the most active price increase occurred in summer, from October to February prices remained practically unchanged.
In contrast to the capital, the prices for new buildings of the comfort class rose more substantially – by 33%, to 29,992 UAH. Apartments in new buildings of economy and business classes rose in price by 30% and 30.1%, respectively. The price increase in objects, positioned in the elite class, was 28%.
Most proposals of the capital region belong to comfort and business classes, price range is 26-32 thousand UAH.
Most of the objects are built and sold in Irpen (41 LC), Sofievskaya Borschagivka (17 LC), Brovary, Gostomel (13 LC) and Bucha (12 LC). By volume of apartments for sale are leaders in Sofievskaya Borschagivka and Brovary, a few less proposals in Kryukivschyna, Irpen, Bucha.
In Lviv and the Lviv region the number of new buildings in active construction and sales is now the same as it was before the Russian invasion – 218, during the year this figure has changed slightly.
The average price per square meter for the year increased by 82.7%, to 45 706 UAH.
The majority of objects in Lviv are in the price range from 24 to 34 thousand UAH, in the structure of supply the comfort class dominates.
Thus, according to the study of M4U, the greatest price dynamics is observed in the business class, where the cost per square meter for the year increased more than twice, by 109%. In the economy segment, prices rose by 66.7%, comfort by 60.3%, and elite by 58.7%.
The largest amount of apartments in new buildings are in Shevchenkivskyi (35 LCD) and Sikhivskyi (32 LCD) areas.
In Odessa and the region a square meter in new buildings during the year of war increased by an average of 48.4%. Here are active 131 out of 180 construction sites before the war (72.8%).
Prices, like in other regions, were rising during the summer, in October the growth stopped, and in December there is even a decrease in prices, an average of 2.3% for two months.
Over the year a square meter more expensive in the segments of economy and elite – 59% and 57%, respectively. The average price increase in new buildings in the comfort class was 46.1%.
“The most interesting dynamics is in the business class: during the year the cost per square meter increased by an average of 39.5%, but it is in this class we observe the largest price decrease during September 2022 – February 2023, which was 5.1%,” – said Danylenko.
The majority of proposals in Odessa new buildings are in comfort and business segments in the price range of 24-38 thousand UAH.
The leader by the number of new buildings is Primorsky district, where now the apartments are sold in 30 residential complexes, of which 16 are positioned in the elite class. In Kievsky district 25 Residential Complexes are under active construction, 12 of which belong to comfort class.
Founded in February 2020, Ukrainian proptech company M4U specializes in the development and implementation of complex intelligent solutions in real estate development.
Number of dwellings in residential buildings, putting into service, by type by region in Jan-June 2022
graphics of the Club of Experts
The Verkhovna Rada adopted in the first reading bill No. 6485 on creating conditions for comprehensive thermal modernization of buildings, MP Ivan Yunakov (Servant of the People faction) said.
“We considered this bill at the committee on February 23 … We will prepare for the second reading, taking into account the conditions and challenges that the country faced the next day,” the people’s deputy wrote on Facebook on Tuesday.
According to the explanatory note to the bill, the document will remove a number of legislative obstacles to the implementation of thermal modernization projects, including in the case of state support.
The bill amends the law “On the Energy Efficiency Fund” in terms of the procedure for developing, reviewing and accepting applications, implementing and verifying projects.
The draft law will also simplify the implementation of partial thermal modernization projects by reducing the number of procedures, as well as introducing clear criteria in terms of energy efficiency indicators for such projects.
In addition, the procedure for the creation and functioning of associations of co-owners of an apartment building (OSMD) will be simplified.
The Kyivstar mobile communications operator has connected Chornobyl (Kyiv region) and the complex of buildings on the territory of Chornobyl Nuclear Power Plant (NPP, the Shelter facility) to the 4G high-speed Internet network. The operator said on Monday that in the near future, 4G communications will be turned on at the main checkpoint at the entrance to the Chornobyl zone in the village of Dytiatky.
To date, the 4G communication network from Kyivstar operates in 6,795 cities and towns, with 29 million people living in them (70% of the country’s population).
The 4G high-speed mobile Internet has already been used by 7.250 million subscribers. In just a year, the number of such subscribers has quadrupled compared to August 2018.
Kyiv-based Rauta Group LLC, which deals with design and installation of fast-track buildings, has received a license for construction of the building with medium and high consequence class (CC2, CC3).
“Obtaining a license is a logical continuation of the company’s development in the highest quality construction materials supply and services provision,” the company quotes Rauta Director Andriy Ozeichuk as saying.
Now in addition to the supply of European produced sandwich panels, facade cladding and steel structures, the company carries out a full list of construction and installation works, as well as a general contracting.
Rauta Group was founded in 2014. Ozeichuk is a 100% shareholder of the company.
