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Construction in Ukraine grew by 40%, and investors are ready to invest $500M in the industry.

Construction has strong investment potential, accounting for 2.3% of Ukraine's GDP.

Construction site in morning dawn

In the first quarter, the volume of construction work increased by 40.3% year-on-year, according to the State Statistics Service. Growth in January was 18.1%; in February, it accelerated to 20.7%; in March, an even stronger result was recorded with an increase of 69.3%. The construction of residential buildings in the first quarter increased by 25.1%, and non-residential construction (office, commercial real estate) by 34.4%. Infrastructural construction increased in volume by 48.2%. Moreover, in March it was more than twice as large as the indicator from March a year ago.

At the same time, the volume of construction work is only 79% of the pre-war figure. Housing construction remains the weakest: only 48% of the pre-war volume. On the other hand, infrastructural construction is already 8% higher than the pre-war level due to the significant current need for reconstruction.

In turn, KSE analysts said companies are ready to invest $500M in rebuilding Ukraine, particularly in the construction sector. Among them are the Irish manufacturer of building materials, CRH, Kingspan, and Ukrainian developer City One Development.

 

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