The indirect cost of housing construction in Ukraine increased by 2.1% in the third quarter compared to the previous quarter, according to the indices of indirect cost of housing construction in the regions of Ukraine approved by the Ministry of Development of Communities and Territories.
The relevant document establishes indirect indicators of the cost of housing construction, calculated as of October 1. According to it, the average indicator in Ukraine is 22.6 thousand UAH/square meter.
According to the Ministry, the indirect cost of construction of 1 square meter of housing in Kiev in the third quarter rose to 26.4 thousand UAH, in Kiev region – to 22.6 thousand UAH, in Lviv region – to 22.5 thousand UAH, in Zakarpattya region – 19.6 thousand UAH, Ivano-Frankivsk region – 20.3 thousand UAH, Odessa region – 21.7 thousand UAH. Also high indicators are set in Kharkiv and Donetsk regions – 23.8 thousand UAH/sq. m.
Increased demand for high-quality housing projects, rising prices for basic building materials and finishing work, an increase in the salaries of specialists led to an increase in the cost of housing construction in August by $100-120 per square meter compared to July 2021, Commercial Director of Intergal-Bud (Kyiv) Hanna Layevska said.
“We calculated that over the past month, the cost of housing construction has increased by $100-120 per square meter. And this is facilitated by the increase in prices for basic building materials and work,” she said during a discussion panel at the RED x LUN summer camp.
The increase in prices is also influenced by the intensification of demand for high-quality and modern projects, including in the form of investments in real estate. According to the director, developers are investing in the development of interesting concepts with a developed infrastructure, including additional comfort and service.
In addition, developers are more careful in choosing plots for complex development, says Intergal-Bud.
Intergal-Bud has been operating in the residential real estate market since 2003. Its portfolio includes 74 completed projects with a total area of over 3 million square meters. The company has built 158 houses (Kyiv, Kyiv region, other regions of the country).
The volume of housing construction in Ukraine depending on the region for the first quarter of 2021 increased by 10-20% compared to the fourth quarter of 2020, General Director of the Finance and Investment Management Association (FIMA) Viktoria Volkovska has told Interfax-Ukraine.
“We have analyzed dozens of housing objects working with the Construction Financing Funds. There is an increase in activity in all regions, the most noticeable in Lviv region, where the volume of construction work increased by more than 20%,” she said.
The FIMA study is based on an online survey of managers of Construction Financing Funds conducted in the first decade of April.
According to Volkovska, despite concerns, the New Year holidays, adaptive quarantine and, finally, lockdown did not have a significant negative impact on the construction and sales of housing in the country.
According to the survey, 40% of respondents reported an increase in the volume of construction work of more than 20%, some 10% of respondents noted 20% growth, and 20% – about 10% growth. Only 10% of respondents reported a drop to 10%.
“The level of sales in general did not change, although in some regions it showed an increase of 10%,” Volkovska said.
The Finance and Investment Management Association (FIMA) was established in May 2020 in connection with the entry into force of the law on amendments to certain legislative acts to improve the functions of public administration of financial services markets. It unites 37 companies-managers of Construction Financing Funds in Kyiv, Lviv, Odesa, Dnipro and Kharkiv.
