Despite a 70% rise in construction costs, investment in Ukraine’s housing sector is forecasted to grow by 15% annually.

Andriy Ozeychuk, head of the Rauta engineering and construction firm, noted that construction costs in Ukraine have increased by 70% since the full-scale war commenced. In 2024, expenses for building materials and services rose by 24%, significantly impacting project budgets.

Meanwhile, experts report that the Ukrainian construction market expanded by 20% last year, reaching approximately ₴200B (€4.6B). The demand for new housing grew by 7%, driven by the state’s affordable lending program, eOselya. The largest investments in commercial real estate went into warehouses, manufacturing, and retail spaces. Reconstruction and critical infrastructure protection accounted for approximately 20% of the market.

Additionally, RE developer Alliance Novobud predicts a 15% annual increase in primary housing investment over the next two to three years. “The market has adapted to wartime conditions. Major investors are Ukrainians, while foreign investors increasingly view new buildings as a means to preserve and grow capital.”

Real estate experts warn that Kyiv may soon face a shortage of ready-made housing in the business and comfort segments.