Labor shortages, high construction costs, and the slow implementation of reforms and permitting procedures are the main challenges facing developers and architects in Ukraine during the war, according to representatives of the construction industry who spoke at the roundtable discussion “Building the Future: Development in Wartime.”
“There is a very severe shortage of construction workers. We all felt this problem this past spring. As a company owner, I am looking for people to finish building our projects,” said Oleksiy Baranov, founder and CEO of A Development, at the roundtable hosted by the Interfax-Ukraine news agency.
In addition to purely construction-related specialties, there is also a shortage of architects on the market, said Yulia Polyukhovich, chief architect of the A Development project.
“There are many other challenges during the war. For example, there is a very severe shortage of personnel—there are very few architects right now. This is a very serious challenge, because whereas previously three or four architects would work on a project, now there may be only one,” she explained.
At the same time, architects must quickly adapt projects to reflect changes in building codes and standards, particularly regarding safety, the expert noted.
As Vitaliy Borul, CEO of CREDO Development, noted, the construction of underground shelters with emergency exits is a significant expense for developers, and therefore the government should compensate for the cost of building them.
“It looks cool, it’s safe, but it’s very expensive. I believe the government should compensate for the cost of underground shelters. The government is responsible for people’s safety, so we need to reach some kind of agreement with the government, and it should cover these costs,” the expert said.
Developers have also seen a significant increase in construction costs. Furthermore, the market reacts to every enemy attack on the city—after “strikes,” housing sales drop. Insurance against construction risks is also very expensive, Baranov noted.
“Before the war, the calculation was simple: the cost of materials (concrete or brickwork) was equal to the cost of labor. Today, the cost of labor exceeds the cost of materials by 2–3 times,” said the founder of A Development.
According to Baranov, significant obstacles are also created by unresolved procedures regarding the adoption of subordinate legislation by the government and ministries, particularly in the area of cultural heritage protection. At the same time, Kyiv’s local authorities have not considered land allocation requests for 1.5 years.
“For example, amendments were made to the law on cultural heritage, but the Ministry of Culture has not yet approved the relevant regulations. In May 2022, amendments came into effect under which it is impossible to carry out any work in the central historic area without designated zones and regulations. Yet the procedure was only approved in May of this year—meaning four years have passed. And yet, for example, there is still no procedure regarding heritage sites,” he noted.
Baranov emphasized that construction in Kyiv’s historic center must be well-thought-out and transparent, but at the same time controlled by the city.
“Kyiv must set an example. Construction is very expensive, and you can’t just erase a building with an eraser. We need to adopt an approach that ensures everything happens transparently and quickly, while still building structures that will remain relevant for years to come,” the expert said.
The Experts Club analytical center analyzed data from the international consulting firm Savills on real estate market trends in the world’s leading countries and identified a number of trends in the European real estate market in 2026.
Investment in European real estate reached 54 billion euros in the second quarter of 2026, up 7.7% year-over-year, according to Savills data.
Despite the overall increase in transaction volume, Savills characterizes the recovery of the European market as uneven. Escalating macroeconomic and geopolitical risks have forced investors to raise their standards for property quality.
Capital is now primarily directed toward real estate that provides a stable cash flow, has a transparent market value, and is located in segments with long-term structural demand.
One of the main beneficiaries of this new investment strategy has been so-called “living real estate.”
In the first half of 2026, multifamily rental housing, specialized student dormitories, senior living facilities, and housing for the elderly already accounted for 29% of all real estate investments in Europe.
Thus, nearly one in every three euros of institutional capital directed toward European real estate went to properties directly related to residential living.
The growing interest in this sector is linked to a housing shortage in many major European cities, rising rents, demographic changes, and relatively stable income streams compared to some traditional types of commercial real estate.
At the same time, investor attitudes toward office properties are shifting. High-quality, modern office buildings in central business districts remain in demand, while outdated and poorly located properties are significantly harder to sell or finance.
According to Savills, the market is effectively divided into two types of assets. In the first category, investors are willing to compete for high-quality properties with reliable tenants and predictable income. In the second, real estate with a poor location, high future costs, or uncertain demand may remain outside the scope of investment interest for a long time.
Savills notes that Europe remains an important destination for global capital, but investment requirements have become significantly stricter.
Markets where a significant price correction has already occurred and a clearer entry point for investors has emerged have the best chances of attracting capital. An additional advantage is the limited supply of new properties and stable demand from tenants.
“The recovery is taking place in stages and is driven by investor confidence in specific deals, rather than a general willingness to take risks,” note Savills analysts.
Thus, the European real estate market is gradually emerging from a period of sharp interest rate hikes and asset revaluation; however, the new investment cycle differs significantly from the previous one. Capital is increasingly being directed not simply toward real estate as an asset class, but toward specific segments with the most predictable long-term demand.
Source: Savills, Global Capital Markets Research Q2 2026 — Europe.
According to Experts.news, residential real estate and institutional leasing became one of the fastest-growing segments of the Central and Eastern European investment market in the first half of 2026.
The residential/living segment accounted for 19% of investments in commercial real estate in the CEE-6, compared to just 7% a year earlier, according to Colliers data.
Thus, its share nearly tripled in less than a year and approached the levels of the traditionally largest real estate classes—offices and retail properties.
One of the most telling examples was Poland, where the largest transaction in the history of the local PRS (institutional rental housing) market took place in the first half of the year.
Vantage Development acquired 18 completed Resi4Rent projects for 575 million euros. The portfolio includes 5,322 apartments in Warsaw, Kraków, Wrocław, Gdańsk, Łódź, and Poznań.
This transaction reflects growing interest among large investors in residential properties intended not for the resale of individual apartments, but for long-term professional leasing of entire portfolios.
This model is widespread in Western Europe, but in Central and Eastern Europe, the institutional rental market is much younger and has more room for growth.
Interest in the segment is driven by urbanization, high housing purchase costs, labor mobility, and growing demand for professionally managed rental housing in the region’s largest cities.
According to Colliers, with total investment in the CEE-6 region amounting to 5.8 billion euros, the market is gradually becoming more diversified, and residential/living has already become one of the top four investment sectors.
The housing crisis in Spain continues to deepen amid a long-standing shortage of new construction, a rise in the number of households, and a record increase in population—a significant portion of which is due to migration. The structural housing shortage in the country is estimated at approximately 700,000–750,000 units, according to data from the Funcas analytical center.
The current situation should not be compared to the housing bubble of the 2000s. At that time, significantly more housing was being built in Spain, and market growth was fueled by lending. Now the problem is the opposite—supply consistently lags behind demand.
In recent years, approximately 100,000 new homes have been completed annually in Spain, while about 230,000 new households have been formed. The gap that has accumulated since 2020 has reached nearly 700,000 units.
As a result, both home purchase prices and rental rates are rising. The problem is particularly acute in Madrid, Barcelona, the Balearic Islands, Valencia, and popular coastal areas. At the same time, the shortage is gradually spreading from the largest cities to their suburbs and medium-sized cities. Funcas notes that rents have been rising faster than wages in recent years, and young renters spend an average of about 35% of their budget on housing and utilities.
Experts believe that some of the measures taken by the authorities can only temporarily curb prices but cannot eliminate the root cause of the crisis. Rent controls may lower housing costs for some current tenants, but at the same time reduce the number of apartments that landlords are willing to put on the market. Subsidies for buyers, given limited supply, may also lead to further price increases.
Among the long-term solutions, Funcas cites increasing the supply of land parcels, expediting the issuance of building permits, enhancing legal certainty for developers and property owners, and expanding the stock of affordable rental housing. Social rental housing in Spain accounts for only about 2–3% of the housing stock, which is significantly below the EU average.
Spain’s rapid population growth is placing additional pressure on the market. As of July 1, 2026, the country’s population stood at a record 49.80 million, an increase of 444,200 from the previous year. At the same time, Spain’s National Institute of Statistics (INE) explicitly states that the population increase is driven by people born abroad, while the number of residents born in Spain is declining.
The number of residents in Spain born abroad reached 10.29 million by mid-year, accounting for more than one-fifth of the country’s population. The number of residents with foreign citizenship stood at 7.44 million, having increased by 87,200 in the second quarter alone.
According to the latest comprehensive breakdown from the INE, the largest foreign communities consist of citizens of Morocco—about 969,000,
Colombia—677,000, Romania—609,000, Venezuela—378,000, Italy—346,000, and the United Kingdom—266,000. There are also significant communities of people from Peru, China, Ukraine, and Latin American countries.
The influx continues in 2026. In the second quarter alone, approximately 34,000 Colombian citizens, 23,300 Venezuelans, and 21,100 Moroccans arrived in Spain. In the first quarter, Ukrainians were among the largest groups of new arrivals—about 25,700 people.
Separate statistics from Spain’s Ministry of Migration show that as of the end of June 2026, 353,000 Ukrainian citizens already held valid residence permits, mainly thanks to the temporary protection mechanism.
The growth of the foreign population cannot be considered the sole cause of the housing crisis; experts attribute it primarily to a decade of insufficient construction. However, migration significantly increases the number of households and the demand for rentals, especially in large cities and economically active coastal regions. Given the construction of approximately 100,000 units per year, the additional population growth of hundreds of thousands of people becomes a significant factor in the further rise in housing costs.
Thus, the housing crisis in Spain is driven by several factors: a chronic shortage of new construction, an increase in the number of households, a limited supply of affordable rental housing, internal migration to major cities, foreign buyers, and the tourism sector. Rapid population growth due to immigration exacerbates the existing shortage, but is not its root cause.
Greece ranks first among European countries in terms of seasonal growth in short-term rental prices: in the summer, the average rental price is 54.9% higher than in the rest of the year, according to data from the analytics platform AirDNA.
The AirDNA study was published on May 21, 2026, and updated on May 29. Analysts compared the average daily rate (ADR) for short-term rentals in June–August with the rate for the remaining nine months of the year.
In Greece, the average off-season rate is 112.64 euros per night, while in June–August it rises to 174.46 euros. Thus, the seasonal premium reaches 54.9%—the highest rate among the European countries analyzed.
Croatia ranks second, with summer prices 37.6% higher—€154.28 compared to €112.09 during the rest of the year. Portugal ranks third, with a seasonal increase of 36.5%, to €160.06 from €117.27.
Seasonal fluctuations are particularly pronounced on popular Greek islands. On Mykonos, the average cost of a short-term rental rises from approximately 458 euros during the off-season to 758 euros per night in the summer—an increase of 65.6%.
At the same time, even more dramatic fluctuations are observed among individual European resorts. For example, Portimão, Portugal, shows a seasonal increase of about 71.6%, but Greece ranks first overall among countries.
The sharp rise in prices is accompanied by steady demand. According to AirDNA estimates, before the start of the season, the number of nights booked in Greece for June–August 2026 was approximately 9.3% higher than a year earlier. For July, the growth in early bookings was 13.5%, and for August, 11.4%.
Actual statistics for the summer confirm the high price levels. In June, the average cost of a short-term rental in Greece reached 178.8 euros per night, an increase of 12.2% year-over-year, while the European average was 150.05 euros, up 7.5%. At the same time, the number of available properties in Greece decreased by 2.5%, to approximately 156,000
. In July, the average price rose to 200.35 euros per night, which is 12.8% higher than in July 2025. The European average rate was €159.20, up 8.2% year-over-year. Revenue per available night in Greece increased by 14.3% to €142.8.
Over a longer period, the growth is even more pronounced. According to AirDNA, the average cost of a short-term rental in Greece has increased by approximately 100% over the past ten years—from about 100 euros in 2016. Over the past five years, the increase has been about 38%.
However, the claim that Greece “has outpaced all of Europe in terms of Airbnb price growth” should be interpreted with caution. The top ranking specifically refers to seasonal summer growth—that is, a comparison of June–August with the rest of the year—rather than annual price growth. Based on actual July data, year-over-year growth in Greece was 12.8%, compared to an 8.2% average across Europe.
In the first half of 2026, foreign citizens purchased 51,627 residential properties in Spain, which is approximately 4% more than during the same period last year and marks the highest figure in the history of relevant statistics from Spanish registries.
The second quarter proved to be the most active: foreigners concluded more than 26,8 thousand transactions, and their share of all registered housing purchases reached 15.98%—a historic high, according to data from the Colegio de Registradores de España.
At the same time, the overall Spanish housing market, on the contrary, cooled off somewhat in the second quarter. The number of transactions fell by 5.7% compared to the previous quarter—to 167,934 thousand, with sales of new-construction properties dropping by 11.5% to 34,919 thousand. Thus, foreign demand strengthened against the backdrop of a decline in overall buyer activity.
British citizens remained the largest group of foreign buyers in the first half of the year. They purchased 3,567 properties, although the number of transactions fell by approximately 10% year-over-year.
Dutch citizens came in a close second—with 3,489 purchases, a 12% increase compared to the first half of 2025. The gap between the two largest groups was just 78 transactions. In the second quarter alone, British buyers closed 1,843 deals, while Dutch buyers closed 1,830.
Official statistics for the second quarter show that British buyers accounted for 6.99% of all foreign transactions, while Dutch citizens accounted for 6.94%. Germans came in third with a 6.11% share.
Germany retained its third place among the largest foreign markets, although demand from German buyers declined slightly over the first half of the year—by approximately 2%. At the same time, the number of purchases by Italian citizens rose by 11%, by Poles—also by 11%, by French citizens—by 3%, and by Irish citizens—by 6%. Belgian demand, on the other hand, fell by approximately 16%.
Thus, the structure of foreign demand in Spain is becoming increasingly diversified. Just ten years ago, British buyers were significantly ahead of other nationalities, whereas now the gap between the United Kingdom, the Netherlands, Germany, and the next group of European buyers has narrowed considerably. In the first quarter of 2026, for example, British and Dutch buyers accounted for 6.82% and 6.56%, respectively, of foreign purchases.
The most detailed official report from the Colegio de Registradores for the first quarter of 2026 shows that Ukrainians ranked 10th among foreign buyers, accounting for 3.08% of all foreign real estate transactions; Ukrainian citizens made approximately 765 purchases over the three-month period.
In terms of the number of transactions at the start of the year, Ukrainians trailed behind the British, Dutch, Moroccans, Germans, Italians, French, Romanians, Poles, and Belgians, but outpaced citizens of China, Sweden, Ireland, the U.S., and Russia.
By comparison, Chinese nationals accounted for 2.69% of foreign purchases, while Russians accounted for only 1.44%. Thus, the share of Ukrainians was more than twice that of Russians.
The full official report for the first half of the year, broken down by nationality, has not yet been presented in the registrars’ brief press release; therefore, the exact number of purchases made by Ukrainians over the six-month period should be interpreted with caution. If the share remains at around 3%, this could amount to approximately 1,500 transactions for January–June; however, this is an estimated figure and not a separately published official statistic.
In support of these statistics, Ukraine’s largest international real estate agency—HomiUm—notes a steady increase in demand for real estate in Spain and confirms the long-term investment potential of this market.
According to the company’s CEO, Artur Brazilevsky: “One in five of our agency’s clients buys real estate specifically in Spain.”
The opposite trend is observed among Russian citizens. In the first half of the year, Russians purchased fewer than 1,000 properties, and the number of transactions fell by more than 20% year-over-year.
In the second quarter, the share of foreign buyers reached 32.27% in the Balearic Islands and 31.03% in the Valencian Community. At the same time, the share of foreign buyers increased in all of the country’s autonomous communities.
In the first quarter, a high concentration of foreign demand was also observed in the Canary Islands—22.78% of transactions—and in the Region of Murcia—21.73%. In the province of Alicante, foreigners accounted for about 44.7% of home sales, and in Málaga, more than a third.
Overall, over the past 12 months, foreign citizens have purchased approximately 99,400 homes in Spain, meaning the market has come very close to the 100,000 mark for foreign transactions per year.
The growth in international demand is occurring alongside a sharp rise in real estate prices. The average registered price of housing in the second quarter reached a new all-time high of 2,487 euros per square meter, increasing by 2.4% quarter-over-quarter and by 9.2% year-over-year. The resale index showed even more significant year-over-year growth—16.7%.
Thus, despite a decline in the total number of transactions in Spain, foreign demand continues to strengthen. At the same time, the market is becoming less dependent on traditional British and German buyers: the role of the Netherlands, Poland, and a number of other European countries is growing, while Ukrainians remain among the most prominent nationalities in the Spanish real estate market.
Brazilevsky, FOREIGNER, Homium, HOUSING, REAL ESTATE, SPAIN, UKRAINE
