Business news from Ukraine

WHAT EXPECTED REAL ESTATE MARKET IN COMING MONTHS – EXPERT OPINION

The war caused and continues to cause significant damage to the economy of Ukraine. Today, perhaps, the construction and real estate markets suffered the most from the hostilities. Thus, the report of the National Bank of Ukraine “On Financial Stability” dated June 17, 2022 indicates that since the beginning of the war, the market has practically stopped, both in terms of construction and the sale of housing. At the same time, according to the NBU, the situation has begun to level off in recent weeks, and above all in the regions that are least affected by the destruction from the war.

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The most favorable situation is in the western regions of the country, while the National Bank notes that a number of significant problems remain there. First of all, this is a market imbalance, when the prices declared by sellers are not supported by demand and are supported artificially.

As for construction, here, according to the regulator, the situation is more optimistic. Developers have restored work on almost 50% of the facilities in the country. The most positive dynamics is observed in the western regions, in the center and in the Odessa region.

As for the office real estate market, according to the NBU, it suffered to a greater extent from the massive transition of staff to remote work.

The Open4business portal asked financial expert Igor Stakovichenko to comment on the current situation. In his opinion, the severity of the crisis in the real estate market directly depends primarily on the intensity of hostilities in various regions of the country, as well as on the well-being of the population.

“We see that the demand for housing in the same Kharkiv and Dnipro collapsed almost equally. At the same time, housing construction in Kharkiv is at a standstill, while in Dnipro it is being restored. This is due to the risk assessment by developers, since the Kharkiv region is now under devastating shelling by the aggressor,” the expert believes.

In his opinion, most of the prices in both the primary and secondary markets are dictated by the overestimated expectations of developers who continue to hope to find a buyer for their goods despite changes in the economy and a decrease in the income of part of the population.

“Builders think in the old way, and form the price based on the cost and those mark-ups that were fair in the pre-war period. Buyers have become much more cautious and assess the risks, in particular, the presence of bomb shelters, evacuation routes, and so on. As for the secondary market, here prices are often drawn from the ceiling, hoping more for luck, ”said Stakovichenko.

According to the expert, market recovery can be expected after the end of the war, when the demand for housing will increase and investors’ fears will decrease.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN OF JAN 2022 (MLN UAH)

Volume of construction products produced by type in of Jan 2022 (mln UAH)

SSC of Ukraine

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KYIV NATIONAL UNIVERSITY OF CONSTRUCTION AND ARCHITECTURE TO PREPARE BACHELORS UNDER REDUCED THREE-YEAR PROGRAM

Kyiv National University of Construction and Architecture (KNUCA) will prepare bachelors under a reduced three-year program.
“We are ready to solve a problem of the shortage of specialists for restoration and construction of certain facilities. Now we are developing reduced programs, analyzing how to optimize them. After the victory, our defenders will be able to take these courses and get involved in restoration of the country as soon as possible,” professor, rector of Kyiv National University of Construction and Architecture Petro Kulikov said during a press conference at Interfax-Ukraine on Thursday.

According to him, the task is to “squeeze” the four-year bachelor’s program to three years.
The KNUCA rector noted that a smaller number of applicants is expected this year. “We are losing foreign students, as interest in the country at war, of course, is falling. Colleagues in European countries have provided preferences for our applicants, and a significant number of those who have gone abroad are considering this possibility. Despite this, we hope that we will have a full-fledged enrollment,” Kulikov said.
At the same time, he noted that international cooperation between universities is expanding. “I am grateful to our colleagues from Germany, Poland, and the Czech Republic. There are no political moments in the scientific and educational environment, there is, above all, a creative interest. In the coming days, we are signing an agreement with a French higher education institution, in June – an agreement between an association of Polish and Ukrainian universities. We are talking about the exchange of students and other forms of cooperation,” Kulikov said.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN OF JAN 2022 (MLN UAH)

Volume of construction products produced by type in of Jan 2022 (mln UAH)

SSC of Ukraine

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KOVALSKA RESUMES WORK ON CONSTRUCTION SITES

The Kovalska Industrial and Construction Group is resuming work at its own construction sites in the Ukrainian capital, the group’s press service has reported.

“The real estate market is very sensitive to all shocks, but the economy cannot be restored without large business. Therefore, following the gradual resumption of work on industrial assets, we launched all construction sites in Kyiv at once,” the group’s press service cited CEO of Kovalska Serhiy Pylypenko on Friday.

It is noted that work has already begun at facilities along Drahomanova, Berezniakivska and Vavilovykh streets. The work of construction cranes, monolithic and facade work have been launched. Starting May 9, construction work at the Crystal Park Tower and Unit City facilities will resume.

Kovalska has been operating in the construction market of Ukraine since 1956. It unites more than 20 enterprises in the field of extraction of raw materials, production and construction.

Enterprises of Kovalska work in Kyiv, Zhytomyr, Lviv, Kherson and Chernihiv regions. The total number of employees is 5,000 people.

In addition, the group includes Kovalska Real Estate, which is engaged in construction of residential facilities in Kyiv. Its portfolio includes 20 completed residential projects.

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MINISTER OF EDUCATION OF UKRAINE: ALL CONSTRUCTION, AGRICULTURAL, HIGH-TECH AND PEDAGOGICAL SPECIALTIES WILL BE PRIORITY IN STATE ORDER

Minister of Education and Science Serhiy Shkarlet says that when forming the state order for 2022, all construction, agricultural, high-tech and pedagogical specialties will be a priority.
“Today we are already working with the Ministry of Economy, the Ministry of Digital Transformation regarding the formation of a budget order for 2022. The focus will be on high-tech and post-war economic recovery,” Shkarlet said in an interview on Thursday morning’s national telethon.
According to the minister, the humanitarian block, highly competitive specialties: economics, social sciences, management, public administration, lawyers will not have a large share of state funds covered in the state budget.
At the same time, Shkarlet noted that builders, all agricultural, high-tech, pedagogical specialties will be a priority, including when applying to universities.
The Minister also stressed that the emphasis is on professional higher education.

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