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
Ukrainian developers need access to project financing, and securing bank or international loans covering 20–30% of a project’s cost may be sufficient to begin construction, according to Alexei Koval, CEO of the Perfect Group.
As Koval stated in an interview with the Interfax-Ukraine news agency published on September 1, 2026, the financing model for residential construction in Ukraine has changed significantly since the start of the full-scale war. Whereas before 2022 a developer could invest about 10% of its own funds, receiving up to 90% of the resources from buyers, now self-financing at the initial stage can reach 60%.
According to him, Perfect Group is conducting negotiations through its representatives with the European Bank for Reconstruction and Development. European financial institutions are prepared to consider lending to the Ukrainian private sector at interest rates ranging from 6–8% in euros; however, for affordable housing projects, a rate of 3–4% would be more acceptable.
The company believes that loan financing amounting to 20–30% of the project estimate could make it possible to begin construction, after which mortgage programs, including “єОселя,” could be brought in to finance the project.
Koval also noted that the introduction of escrow accounts for homebuyers without the simultaneous creation of a project financing system for developers could lead to a shortage of resources for launching new projects.
According to his estimates, the profitability of development projects in Ukraine under normal conditions is comparable to that in Europe and stands at about 18–20%.
Perfect Group was founded in 1991. According to the company, over the course of its operations, the group has commissioned more than 110 buildings comprising over 20,000 apartments with a total area of more than 1.5 million square meters.
From September 1 to 9, Ukraine exported 630,000 metric tons of grains, oilseeds, and products derived from them, Minister of Agrarian Policy and Food Taras Vysotsky said at a briefing on Friday.
“From September 1 to 9, 630,000 metric tons of grains, oilseeds, and their processed products were exported. As of today, this represents 40% of what we could have exported. We ended August at 33%. Our forecast remains unchanged—to reach 50% of the target for September–October,” Vysotsky said.
According to him, 380,000 metric tons of grains were exported (35% of demand), 94,000 metric tons of oilseeds (64%), 97,000 metric tons of oil (66%), and 60,000 metric tons of meal (33%).
Vysotsky noted that compared to 2025, exports of grains, oilseeds, and their processed products have decreased by 60%.
DTEK invested 101.7 billion hryvnia in Ukraine’s energy sector from 2022 to 2025, the energy holding company announced on Thursday.
“We are restoring facilities destroyed by the enemy, building new capacity, and bringing global technology and financial partners on board for Ukrainian projects,” the statement said.
In total, Rinat Akhmetov’s SCM Group, which includes DTEK, has invested more than $4.3 billion in Ukraine since the start of the war, of which approximately $1 billion has gone toward restoring facilities destroyed by Russia.
SCM is now launching the global “Invest in Ukraine” initiative, calling on the international business community to invest in Ukraine today, without waiting for the war to end.
“Millions of people will see its message: Shakhtar will play the group stage of the 2026–27 Champions League in jerseys bearing the ‘Invest in Ukraine’ slogan,” DTEK reported.
Ukraine needs investments, new projects, and international partners right now, the energy holding company emphasized.
DTEK, ENERGY, INVESTMENT, SCM, UKRAINE
The Ministry of Communities, Territories, and Internally Displaced Persons of Ukraine (MinRegion) proposes introducing a quality guarantee of at least 10 years for new real estate properties immediately after they are put into operation; the government has already supported this initiative, according to the ministry’s press service.
MinRegion clarified that, to implement these changes, it is proposed to amend the Civil Code of Ukraine and the laws “On the Regulation of Urban Development” and “On the Protection of Consumer Rights.”
“A person who purchases a new property should be protected not only at the time of purchase. We propose introducing a quality guarantee for the property lasting at least 10 years. If, during this period, the owner discovers defects that affect the property’s serviceability, they will be able to require the developer to remedy them. If the owner corrects the defects on their own, the developer must reimburse those costs,” said Deputy Minister Natalia Kozlovska, whose remarks are quoted in the press release.
The construction client or its successor in title will be responsible for the quality of the property during the warranty period.
The new rules will apply to completed properties that have been accepted for use, with the exception of properties built on the basis of a construction passport and certain properties with minor SS1 consequences, where the work was performed in-house.
The ministry’s press service reported that, following the adoption of the amendments, if defects are discovered during the 10-year warranty period, the owner must notify the construction client of them. Defects that affect the normal use of the property must be confirmed by a report from a certified specialist based on the results of an inspection. The construction client must, within 30 days, propose how and by when to remedy the defects, or provide a reasoned refusal. The owner must, within seven days, either agree to the proposed solution or reject it. Once agreed upon, the client must remedy the defects within the specified time frame. The owner may also remedy them independently or engage other specialists. In such a case, the construction contractor must fully reimburse the repair costs.
A similar initiative was included in government bill No. 13607 dated August 7, 2025, but following the resignation of Yulia Svyrydenko’s government, it was withdrawn on July 16, 2026. At that time, experts proposed extending the mandatory warranty to include SS1 buildings (most often private homes) and increasing the warranty period for monolithic-frame buildings to 30 years.
Ukraine’s Cyber Police have urged citizens not to use the services of dubious intermediaries who offer, via the internet, to exchange old paper driver’s licenses for modern documents without visiting Ministry of Internal Affairs service centers.
According to law enforcement officials, scammers post offers on social media and messaging apps, promising to issue a new license entirely online. To do this, they may demand an advance payment, as well as photos of the passport, driver’s license, and other documents.
As a result, citizens risk not only losing money but also receiving a counterfeit license, the details of which are not recorded in government registries, the Driver’s Cabinet, or the “Diya” app. Furthermore, copies of documents provided to scammers may later be used for other illegal activities.
The Cyber Police remind the public that paper-booklet-style driver’s licenses issued in Ukraine before 1991 remain valid within the country. There is no mandatory requirement to replace them. If you wish to obtain a modern-style license, you must contact a Ministry of Internal Affairs service center and complete the official procedure.
Law enforcement officials list the following as signs of potential fraud: communication exclusively via messaging apps; promises to issue a license entirely online; offers to “enter data into the database” without following the official procedure; demands to transfer an advance payment to a private bank card; and requests to send photos of a passport or other documents.
You should exercise particular caution if the person you’re communicating with claims to be an employee of the Ministry of Internal Affairs service center but suggests conducting all procedures via social media or a private chat.
Official government services are not provided through random social media pages and do not require you to share personal documents with unknown individuals, the Cyber Police emphasize.
If a citizen discovers a suspicious post or has already sent money or personal information to scammers, law enforcement recommends saving the correspondence, links, phone numbers, and other evidence, and then contacting the police or submitting an online report via the Cyber Police website.
Additional information on common scams is available on the “Kyber Brama” portal, and official information on driver’s license exchanges can be found on the website of the Ministry of Internal Affairs’ Main Service Center.
Source: Cyber Police of Ukraine.
CYBER POLICE, Driver, fraud, Ministry of Internal Affairs, UKRAINE
