Housing construction costs in Ukraine have increased by 10-30% during the war, with end consumers comprising the majority of buyers.

Arseniy Nasikovsky, a partner at the DIM group of companies, mentioned during a business summit in Lviv that in Kyiv investor interest in the primary housing market has declined. Before the full-scale war, 60% of sales were made by investors early in the construction process, but now the majority are end consumers.

“The reason is not a lack of funds or a decrease in buyers. The fact is that the cost of primary housing often exceeds the prices of finished properties on the nearby secondary market. The developer cannot sell below the cost, which has increased by 10 to 30%,” the industry expert explained.

However, he believes that after the war residential real estate will remain a primary sector for investment, especially in the business and premium segments downtown. According to Nasikovsky, demand will grow in these areas due to the limited availability of plots, leading to significant price increases in premium clubhouse properties – up to $7,000-$8,000 or even $10,000 per square meter.