The cost of construction work and materials in Ukraine has risen by approximately 30% since the beginning of 2026, with the labor shortage remaining the main factor driving up prices, according to Oleksiy Koval, CEO of Perfect Group.
According to him, labor costs are rising the fastest, followed by construction materials in terms of the rate of increase. However, this estimate of approximately 30% growth does not account for the additional impact of currency fluctuations and indexation.
The cost structure for apartment renovations has also changed. Before the full-scale war, materials accounted for about 70% of renovation costs, while labor accounted for 30%. Now the ratio is closer to 50/50, and in some cases, the cost of labor already exceeds the cost of the materials themselves.
The labor shortage affects more than just finishing work. Developers are having difficulty finding concrete workers, crane operators, and other skilled professionals.
Another factor driving up costs during the fall and winter months may be the expenses associated with providing autonomous power supply to construction sites. During power outages, interior construction work requires the use of diesel generators; accordingly, costs depend on the price of fuel.
Perfect Group already includes generators and uninterruptible power supply systems in the budgets for new projects. Looking ahead, the company is also considering the use of solar panels and gas generators.
According to Koval’s assessment, there are no signs of a slowdown in the growth of construction costs yet.
Perfect Group has been involved in residential and commercial real estate in Ukraine since 1991.
CONSTRUCTION, cost of construction, LABOR, REAL ESTATE, UKRAINE
The indirect cost of housing construction in Ukraine in the second quarter of 2025 increased by 2.8% compared to the previous quarter and by 14.3% to the same quarter of 2024, it follows from the indices of indirect cost of housing construction in the regions of Ukraine approved by the Ministry of Development of Communities and Territories (Ministry of Development).
The relevant document establishes indirect indicators of the cost of housing construction, calculated as of July 1, 2025. According to it, the average indicator in Ukraine is 25.3 thousand UAH/square meter, while on July 1, 2024 it was 22.2 thousand UAH/square meter.
According to the Ministry, the indirect cost of construction of 1 square meter of housing in Kiev in the second quarter rose to 29.6 thousand UAH, in Kiev region – to 25.3 thousand UAH, in Lviv region – to 25.2 thousand UAH, in Zakarpattya region – 22 thousand UAH, Ivano-Frankivsk region – 22.8 thousand UAH, Odessa region – 24.3 thousand UAH, Dnipropetrovsk region – 24.6 thousand UAH. Also high indicators are set in Kharkiv and Donetsk regions – 26.6 thousand UAH/sq. m.
cost of construction, HOUSING, statistics by regions, UKRAINE
