According to Gazda, a Ukrainian construction company, the price of residential objects that will begin construction in the second quarter is set at the level of ₴45-47 per $1. The price per square meter is tied to the exchange rate in the primary housing market. From January 1 to July 1, the hryvnia lost 7% of its value. In addition, the value of primary real estate is affected by inflation.
After an increase in electricity tariffs and an increase in excise duties on fuel, prices may generally increase by an average of 10-15%: “Manufacturers and suppliers of construction products review prices with a small margin – on average 5%”, experts noted.
Another factor in the increase in the price of square meters is the decrease in the number of new buildings. Since the beginning of the war in Ukraine, the number of new objects has decreased by more than 50%, and in 2025 the market will sag to 30% of 2021’s volume. Thus, by the end of the year the cost of housing in new buildings may increase by another 10-15% on average.