The Kyiv region became the largest among the regional markets for new residential construction listed by the State Statistics Service in January–June 2026, with a figure of 599,300 square meters, while 437,900 square meters were reported in Kyiv, according to Experts.news.
In the Kyiv region, approximately 9,100 apartments were registered at the start of construction. On an annual basis, the area of new construction remained virtually unchanged, decreasing by only 0.3%.
In Kyiv, the area of registered new housing decreased by 10.7%—to 437,900 square meters.
At the same time, the statistics on the number of apartments in the capital appear unusual: the State Statistics Service reports approximately 1,400 registered apartments despite a significant total area. This may be related to the structure of specific projects and the characteristics of the published data.
The Lviv region became the third-largest market, where 501,500 square meters of housing and approximately 7,200 apartments were announced in the first half of the year.
In the Ivano-Frankivsk region, the area of new construction totaled 248,400 square meters, down 20.5% year-over-year. At the same time, approximately 5,800 apartments were registered.
In the Odesa region, the figure reached 328.7 thousand square meters and approximately 1,100 apartments; however, the State Statistics Service has not disclosed comparable figures for the previous year.
Thus, in terms of the volume of announced new construction, the largest markets continue to be concentrated around Kyiv and the western regions of the country.
Despite a sharp recovery in 2025 and growth in indicators in the second quarter of 2026, Ukraine’s new housing construction market remains significantly below the pre-war level.
According to the Experts Club information and analytical center, based on data from the State Statistics Service, the total area of new housing construction in 2025 amounted to 5.8 million sq. m, increasing by 49.4% compared with 2024.
However, compared with 2021, when the figure reached 12.7 million sq. m, the volume remained approximately 54% lower, that is, more than twice as low.
In 2022, the area of new construction amounted to 6.6 million sq. m, in 2023 — 4.2 million sq. m, and in 2024 — 3.9 million sq. m.
Thus, the lowest figure for the period under review was recorded in 2024, after which the market began to recover noticeably in 2025.
In the second quarter of 2026, this process continued: the area of residential buildings declared for the start of construction increased by 6.1% year on year — to 1.65 million sq. m.
At the same time, the sustainability of the recovery remains ambiguous. For the entire first half of the year, the area of new apartment building construction was 2.3% lower than a year earlier, while the number of declared apartments decreased by 6%.
At the same time, construction costs continue to rise rapidly. In July 2026, construction prices were 23.7% higher than in July of the previous year.
Housing prices themselves are also rising: in the second quarter of 2026, they increased by 19.6% year on year and by 3.8% compared with the first quarter.
Thus, the Ukrainian market is simultaneously facing a recovery in construction activity, high inflation in construction costs, and a significant lag behind the supply volumes typical of the period before the full-scale war.
Perfect Group plans to expand its rental real estate business in Kyiv and transfer some of the apartments in its complexes to professional management by hotel operators.
As the company’s CEO, Oleksiy Koval, stated in an interview with Interfax-Ukraine on September 1, 2026, the first such project is being developed in the LA MANCHE residential complex at 46 Shchekavitska Street in Podil. Forty apartments have been allocated for this income-generating real estate project.
The operator will focus primarily on long-term rentals.
Another project is being developed as part of the Stanford residential complex at 35 Predslavinskaya Street. Here, a separate section is planned for short-term rentals, and Perfect Group is in negotiations with a major professional operator.
The developer also plans to extend some hotel services to the other residents of the residential complexes. These include concierge services, babysitting, children’s playrooms, dog-walking, and other additional services.
According to Koval, after a period of competition among developers based on price, architectural concept, and infrastructure, the next key factor in market competition will be service quality.
For comfort-class housing, the company intends to develop a similar approach through digitalization. Perfect Group is developing an app to facilitate communication between residents and the management company, process requests, and vote on additional services. Its launch is planned for before the end of 2026.
In addition to income-generating real estate projects in Kyiv, Perfect Group is building the VELMY aparthotel in Polyanytsia near Bukovel.
One of the well-known hotels on the Montenegrin coast — Plaza in Herceg Novi — will be put up for public auction on September 14. The property together with the land plot has been valued at €30.742 million, the Serbian business portal Parametar.rs reports.
At the first auction, the hotel cannot be sold for less than 80% of its appraised value, so the minimum price will amount to about €24.6 million. To participate, potential buyers were required to pay a deposit of €3.074 million.
The sale is connected with a years-long dispute surrounding the company Vektra Boka, which managed the property. The proceeds from the sale of the assets are to be used to settle the claims of former employees and other creditors. Among them are the municipality of Herceg Novi and the local Water Supply and Sewerage company. CKB banka also has separate claims against Vektra Boka.
If no buyer is found at the first auction, at the second one the minimum price may fall to 50% of the valuation — approximately €15.37 million.
The package being sold includes land worth €7.01 million and buildings worth €23.73 million. The area of the main hotel property is about 5.44 thousand sq. m.
Source — Parametar.rs
The Perfect Group plans to launch its own apartment renovation program for homebuyers in October 2026 and intends to import some of the finishing materials for the program directly from China.
The “7 KVARTAL” residential complex will serve as the pilot project, Perfect Group CEO Oleksiy Koval said in an interview with Interfax-Ukraine. The company is also discussing with banks the possibility of offering loans for apartment renovations.
One of the reasons for launching the program was the sharp rise in the cost of construction work and a shortage of renovation crews. According to the developer’s estimates, labor costs today can account for half the cost of renovations or even exceed the cost of materials.
To reduce costs, Perfect Group has reviewed offers from building materials manufacturers in China and is already arranging its first shipments.
In particular, the company intends to use HPL-like panels, which eliminate the need for some traditional processes such as plastering, wall preparation, painting, or wallpapering. According to the developer’s calculations, this solution should reduce renovation time and costs.
The company is also considering importing other construction products from China, including certain types of rebar and facade solutions. At the same time, Perfect Group believes it is more appropriate to source tiles, laminate flooring, and interior doors from Ukrainian manufacturers.
The group’s in-house production is currently focused primarily on aluminum and metal-plastic windows. Looking ahead, the company also does not rule out launching the production of cabinetry.
Perfect Group has been operating in the Ukrainian real estate market since 1991.
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
