What drove construction growth in Ukraine in 2024?

In 2023-2024, the Ukrainian construction market showed positive dynamics owing to increased economic activity in the central and western regions, as well as the restoration of infrastructure damaged in the war and initiatives to protect energy facilities. However, market volume remains nearly 50% lower than 2021’s pre-war levels.

Non-residential construction displayed the highest growth among all market segments last year. In 2024, active development was observed in logistics, commercial and industrial real estate, as well as hotels. Last year, the commissioning of industrial buildings and warehouses rose by 16% compared to 2023, reaching 987,000 square meters. This figure is only 12% lower than in pre-war 2021.

Key demand drivers for non-residential construction include developers of warehouse and hotel properties, retail chains, food industry companies, machine building and agro-processing firms, and manufacturers of building materials.

One of the primary reasons for 2024’s substantial growth in the industrial real estate market is the relocation of both Ukrainian and foreign enterprises to the central and western regions of Ukraine.