Business news from Ukraine

CONSTRUCTION COST OF BUSINESS CLASS FACILITIES IN UKRAINE UP BY MORE THAN 30-40% OVER PAST 5 YEARS

The cost of construction of business class facilities over the past five years has increased by more than 30-40%, in 2021 it may grow by another 10-20%, Head of the Sales Department of A 136 Highlight Tower Olena Polesko told Interfax-Ukraine.
“The trends of the last two years indicate the interest of a potential buyer in high quality construction with the use of new technological engineering solutions. Special attention is also paid to the architecture of the building, future comfort level and infrastructure in the residential complex under construction,” Olena Polesko said.
According to the expert, the location remains one of the main conditions for the construction of business class complexes, therefore, the central part of the city is usually chosen for such purposes.
“The demand for high-quality business class facilities annually increases by an average of 7-10%. In addition, every year in Kyiv there are less and less free plots for construction in the central part of the city. Hence the systematic growth in the cost of business class apartments,” the expert said.
According to her data, from 2015 to 2020, the cost of apartments in business class residential complexes increased by more than 50%.
According to Polesko, for objects belonging to the business class category, a closed adjoining territory (for example, a green lounge area with outdoor fireplaces and soft sofas), the presence of its own parking lot with electric chargers, infrastructure on the ground floors, the presence of office premises with a separate entrance, round the clock video surveillance, security service, a spacious lobby with the ability to hold business meetings, as well as round the clock concierge service are considered compulsory.
“The status of the facility obliges developers to create new functional services and opportunities, such as, for example, smartbox – a separate space for sports equipment, Lovelypaw – a room for caring for pets, a room for a children’s area with professional babysitting services, a fitness area, or even Fashion hub – a service for residents of such complexes, the essence of which is the ability to order new items from the best designers’ boutiques in Kyiv and use fitting rooms on the territory of a residential complex,” the expert said.
As for technological innovations, building of the business class are increasingly equipped with general house water filtration, individual ventilation units with air purification from harmful gases, unpleasant odors and allergens, for example, pet hair or fine dust.
According to the expert, in 2021, due to the lack of new sites, the supply of business class apartments in the central part of the capital may decrease by 15-20%.
“Due to the reduction in supply, the growth in the cost of housing in modern high-quality business class facilities in 2021 may be from 10% to 20%, depending on the quality of construction, and the conditions created for the comfort of future buyers,” the expert said.

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DELTA STARTS CONSTRUCTION OF HEADQUARTERS OF ZEPPELIN IN UKRAINE

Delta Ukraine, part of the Austrian company Delta Holding, has begun construction of the headquarters of the German company Zeppelin in Vyshneve, Kyiv region.
According to the press service of Delta Ukraine, the facility will include an office part, a training center for its own mechanics and customers’ equipment operators, workshops for the repair of equipment and components, spare parts warehouses, areas for storage and demonstration of equipment and a customs-licensed warehouse.
“Work on the project began back in 2017. Then, through the joint efforts of Delta Ukraine and Delta Wels, a concept was developed and a budget was calculated in two months,” the company said.
Delta Ukraine is part of the Austrian company Delta Holding, founded in 1977 in Wels. It provides services for construction, design, construction management, general contracting, and green building certification. The company has subsidiaries in Austria, the Czech Republic, Slovakia and Ukraine.
Zeppelin GmbH is a German industrial concern, represented in 20 countries around the world in the field of dealership and production, the official exclusive dealer of U.S. Cat equipment in Ukraine.

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VOLUME OF CONSTRUCTION WORK IN UKRAINE 11.2% DOWN IN JAN

The volume of construction work performed in Ukraine in January 2021 decreased 11.2% compared to January 2020, to UAH 7.2 billion, the State Statistics Service has said.
According to the statistics department, in January, the volume of construction work performed decreased by 80.3% compared to the previous month (according to seasonally adjusted data – by 14.6%), while compared to November 2020, this figure decreased by 1.2%.
The State Statistics Service reported that in January 2021 compared to January 2020, the growth in the volume of construction work was observed only in the segment of construction of engineering structures – the figure was 44.8%. At the same time, in residential construction, the decline in the volume of construction work amounted to 9.1%, in nonresidential – 6%.
The share of new construction of the total volume of completed construction work was 43.1%, repairs – 27.6%, reconstruction and technical re-equipment – 29.3%.
An increase in the volume of construction work in January 2021 compared to January 2020 was recorded in Sumy (by 0.2%, to UAH 88.7 million) and Khmelnytsky (by 128.1%, to UAH 285.8 million) regions.
In other regions of Ukraine, there was a decrease in the volume of construction work, in particular, in Zakarpattia region (by 59.4%, to UAH 22.8 million), Vinnytsia (by 55.6%, to UAH 96.8 million) and Luhansk (by 48.5%, to UAH 12 million). In Kyiv city, the indicator decreased 18.2%, to UAH 1.8 billion.
The data are given excluding the temporarily occupied territory of Crimea and territories in Donetsk and Luhansk regions.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN 2020 (MLN UAH)

Volume of construction products produced by type in 2020 (mln UAH).

SSC of Ukraine

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PHASE ONE OF CONSTRUCTION OF ALL-SEASON RESORT IN UKRAINIAN SLAVSKE TO BEGIN NEXT SPRING

Phase one of construction of an all-season resort in Slavske (Lviv region) will begin in 2022, First Vice President of OKKO Group Vasyl Danyliak has said.
“We hope to start phase one of construction next year, in the spring. It will be approximately 20 km of ski trails with basic residential infrastructure,” Danyliak said during the Ukraine 30. Infrastructure forum on Wednesday.
According to him, the payback of the infrastructure of ski resorts in Ukraine takes twice as long as in European countries, so it is important to develop resorts in the summer.
As reported, the complex will include up to 65 km of ski trails. The total project implementation period is from three to five years. The investment volume is up to $500 million.

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SEVERAL COMPANIES FROM UAE INTERESTED IN CONSTRUCTION OF MARINA AND LARGE PORT IN UKRAINE

Several companies from the UAE are interested in building a marina in Odesa, as well as port infrastructure, Ukrainian President Volodymyr Zelensky said at a press conference on Monday.
“There is a question of ports. They [companies from the UAE] are professionals. They are now in our market. We are talking about a large project – the construction of a large marina in Odesa and a large separate port. And one of the companies we met will be in Ukraine this week, and we will talk specifically about river transport, in which they are professionals and are ready to build river ports,” he said.
According to the president, he discussed these issues with representatives of large companies from the UAE during a meeting with business as part of his trip to the UAE.
Zelensky also said that river transportation is the cheapest in Ukraine, while it can be a profitable industry for both business and the budget.
As reported, the UAE plans to increase the turnover of agricultural products with Ukraine tenfold and bring this figure to $2 billion per year.

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