Life Cycle Assessment (LCA) of buildings is gradually evolving in Europe from a voluntary tool to a mandatory regulatory requirement, changing the approach to design, material selection, and calculating the true cost of a building over its entire service life.
This is discussed in an analytical report by the Ukrainian engineering and construction company Rauta, published on September 20, 2026.
According to data cited by the company from the United Nations Environment Programme’s Global Status Report for Buildings and Construction 2025–2026, the construction and operation of buildings account for nearly 50% of global material extraction and about 37% of global carbon dioxide emissions. This is drawing increased attention from investors and designers not only to the initial construction costs but also to a building’s environmental impact over decades of operation.
LCA assesses the environmental impact of a building or a specific material from the extraction of raw materials through production, transportation, construction, operation, repair, demolition, and final recycling or disposal.
The methodology involves analyzing global warming potential, energy and water consumption, emissions to air, water, and soil, as well as waste generation. In Ukraine, this approach is based, in particular, on the international standards ISO 14040 and ISO 14044 and the European standard EN 15978.
According to Rauta, applying LCA as early as the design stage allows architects and engineers to compare alternative solutions not only in terms of price or thermal insulation performance, but also in terms of their total carbon footprint.
This makes it possible to change materials or structural solutions even before construction begins, when making adjustments to the project is significantly less expensive. LCA can also improve a building’s rating during certification under international systems such as LEED, BREEAM, and DGNB.
Environmental Product Declarations (EPDs), which contain verified data on a specific material’s environmental impact, are a key component of such analysis. Integrating this information into a BIM model allows for the automatic recalculation of the environmental performance metrics for the entire project following design changes.
According to Rauta, LCA calculations utilize both universal software solutions such as SimaPro, Sphera LCA, and openLCA, as well as specialized construction systems like Athena Impact Estimator and Preoptima, along with Revit add-ins such as One Click LCA, Tally, and Beacon.
The application of this methodology also changes the criteria for selecting building materials. Preference is given to solutions with lower embodied carbon, a long service life, the ability to be repaired or replaced without interrupting the building’s operation, as well as the potential for reuse or recycling.
Rauta notes that, based on these criteria, steel load-bearing and enclosure structures can offer a number of advantages due to their lower weight, reduced costs for foundations and transportation, and the ability to recycle steel and reuse metal structures, profiled sheeting, sandwich panels, and facade elements.
Changes in European regulations are becoming a particularly important factor for the Ukrainian construction market.
The EU Directive on the Energy Performance of Buildings (EPBD) (EU) 2024/1275 provides for the gradual introduction of accounting for the total carbon footprint of new buildings throughout their entire life cycle. Starting in 2028, the Global Warming Potential (GWP) must be included in the energy performance certificates for large new buildings with an area exceeding 1,000 square meters, and starting in 2030—for all new buildings.
In Ukraine, there is currently no mandatory requirement to conduct LCA calculations, so the methodology is primarily used in projects involving international clients or funding.
At the same time, Order No. 168 of the Ministry of Community and Territorial Development, dated February 6, 2025, which establishes requirements for nearly zero-energy buildings, lays the groundwork for a gradual transition from assessing energy efficiency alone to a broader life-cycle assessment.
At Rauta, they believe that European integration and post-war reconstruction could serve as additional incentives for the widespread adoption of LCA in Ukraine, as international financial organizations and donors are increasingly focusing on projects that meet European standards for energy efficiency and sustainable construction.
Companies that begin using LCA even before mandatory regulatory requirements are introduced can gain advantages in the form of lower operating costs, better preparedness to attract international financing, and faster adaptation to future European regulations.
A separate tool is Life Cycle Costing (LCC), which assesses not the environmental impact but the total cost of owning a building over its life cycle. Combining LCA and LCC allows investors to simultaneously evaluate the environmental consequences and long-term financial costs of various design solutions.
Thus, the approach to building assessment is gradually shifting from minimizing initial construction costs to analyzing the total cost and environmental impact over decades of operation.
Original source: Rauta article “How Building Life Cycle Assessment Is Changing the Approach to Design and Material Selection,” published on September 20, 2026. Rauta – Building Life Cycle Assessment
At the “Carpathian Eight” summit in Bukovel, JSC “Ukrzaliznytsia” proposed a project for the construction of a new 47-km section of European-gauge track from Chernivtsi to Vadul-Sireta on the border with Romania.
According to the project description published on the summit’s website, the investment needed for this project is estimated at $186 million, with grant funding being the preferred option.
“Ukrzaliznytsia” notes that the section is intended to be integrated into the new TEN-T transport corridor “Baltic Sea—Black Sea—Aegean Sea,” which will provide a direct connection between the Ukrainian network and EU infrastructure.
The project is in the final stages of its feasibility study, and implementation is planned to take four years.
In addition, Ukrzaliznytsia proposed at the summit a project to integrate Lviv Central Station with the future European-gauge line from Poland to Sknyliv Station. This involves the construction of a 5-kilometer European-gauge bypass section around Lviv, combined with the construction of a multifunctional passenger terminal at Sknyliv Station.
The funding requirement for this project—in which Poland has been invited to participate—is $100 million; grant funding is also desirable.
A preliminary feasibility study is currently being developed with support from JASPERS, and the project is expected to take five years to complete.
As previously reported, Ukrzaliznytsia has also proposed establishing, in partnership with investors, a low-cost passenger carrier operating on routes between Ukraine and the EU on European-standard tracks, with investments in share capital totaling approximately $441 million. According to the plan, the carrier’s routes will run from western Ukrainian railway hubs—including Uzhhorod, Lviv, and Kovel—to markets in Central and Eastern Europe, specifically Budapest, Bratislava, Warsaw, Vienna, and Berlin.
The first founding summit of the “Carpathian 8” (Carpathian 8 Summit) is taking place at the Bukovel ski resort in the Ivano-Frankivsk region from September 18 to 20.
Kyiv region became the largest among the regional new housing construction markets specified by the State Statistics Service in January-June 2026, with 599.3 thousand sq. m, while 437.9 thousand sq. m were declared in Kyiv.
According to the Experts Club information and analytical center, around 9.1 thousand apartments were declared at the construction commencement stage in Kyiv region. In annual terms, the area of new construction remained virtually unchanged, decreasing by only 0.3%.
In Kyiv, the area of declared new housing decreased by 10.7% — to 437.9 thousand sq. m.
At the same time, the statistics on the number of apartments in the capital look unusual: the State Statistics Service indicates around 1.4 thousand declared apartments despite the significant total area. This may be related to the structure of specific projects and the specifics of the published data.
Lviv region became the third major market, where 501.5 thousand sq. m of housing and around 7.2 thousand apartments were declared in the first half of the year.
In Ivano-Frankivsk region, the area of new construction amounted to 248.4 thousand sq. m, decreasing by 20.5% year on year. At the same time, around 5.8 thousand apartments were declared.
In Odesa region, the figure reached 328.7 thousand sq. m and around 1.1 thousand apartments, but the State Statistics Service does not disclose comparable figures for the previous year.
Thus, in terms of the volume of declared new construction, the largest markets continue to be concentrated around Kyiv and the western regions of the country.
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.
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
