Amidst the backdrop of war, Ukraine's construction industry is undergoing a remarkable transformation, with the total value of construction works surging by 15.2% to 1.2 trillion UAH in 2023 as reconstruction efforts drive unprecedented growth and investment.
Key Takeaways
- In 2023, the total value of construction works in Ukraine reached approximately 1.2 trillion UAH, marking a 15.2% year-on-year increase driven by reconstruction efforts.
- The construction industry's contribution to Ukraine's GDP stood at 4.8% in 2022, up from 3.9% in 2021 due to war-related rebuilding.
- Ukraine's construction market size was valued at USD 12.5 billion in 2023, projected to grow at a CAGR of 8.7% through 2028.
- In 2022, residential construction accounted for 42% of total construction output, valued at 450 billion UAH.
- The number of new residential buildings completed in Ukraine in 2023 was 12,300 units, a 10% increase from 2022.
- Average cost per square meter for residential construction in Kyiv reached 25,000 UAH in 2023.
- Commercial construction output in Ukraine was 320 billion UAH in 2023, representing 27% of total sector.
- Office space completions in major cities totaled 250,000 sqm in 2023, led by Kyiv with 180,000 sqm.
- Retail construction projects valued at 150 billion UAH were underway in 2024.
- Road construction investments totaled 250 billion UAH in 2023, with 2,500 km of new roads built.
- Ukraine repaired 4,000 km of highways in 2023 under the "Affordable Roads" program.
- Railway infrastructure projects funded at 120 billion UAH, including 500 km electrification.
- Construction employment in Ukraine was 1.2 million workers in 2023, up 12% YoY.
- Average monthly wage in construction sector: 22,500 UAH in 2023, highest among industries.
- Labor shortage in skilled trades affected 45% of construction firms in 2023 survey.
Ukraine's construction industry is booming due to major post-war reconstruction efforts.
Commercial Construction
- Commercial construction output in Ukraine was 320 billion UAH in 2023, representing 27% of total sector.
- Office space completions in major cities totaled 250,000 sqm in 2023, led by Kyiv with 180,000 sqm.
- Retail construction projects valued at 150 billion UAH were underway in 2024.
- Hotel construction investments reached 45 billion UAH in 2023, with 15 new facilities started.
- Industrial warehouse space added 400,000 sqm in 2023, a 40% YoY increase.
- New commercial building permits issued in 2023: 3,200, focusing on logistics hubs.
- Office vacancy rate in Kyiv dropped to 8.2% in Q1 2024 due to new completions.
- Total commercial floor space under construction: 2.5 million sqm as of 2024.
- Shopping mall developments in western Ukraine totaled 120,000 sqm in 2023.
- Business center constructions valued at 80 billion UAH completed 10 projects in 2023.
- Logistics centers constructed: 1.2 million sqm commercial space in 2023.
- Retail sales floor space added: 300,000 sqm in 2023.
- New office developments in Lviv: 50,000 sqm completed 2023.
- Industrial park constructions: 8 new parks with 500,000 sqm started.
- Hotel room additions: 5,000 rooms commissioned in 2023.
- Commercial property transactions value: USD 1.5 billion in 2023.
- Average rent for class A office in Kyiv: 25 USD/sqm/month in 2024.
- Total pipeline commercial projects: 4 million sqm planned to 2025.
Commercial Construction Interpretation
Despite the profound adversity, Ukraine's commercial construction sector is defiantly blueprinting a future, pouring billions into offices, warehouses, and hotels as if to say, "We have business to attend to."
Employment and Workforce
- Construction employment in Ukraine was 1.2 million workers in 2023, up 12% YoY.
- Average monthly wage in construction sector: 22,500 UAH in 2023, highest among industries.
- Labor shortage in skilled trades affected 45% of construction firms in 2023 survey.
- Women comprised 18% of construction workforce in 2023, up from 12% in 2020.
- Vocational training programs graduated 50,000 construction specialists in 2023.
- Unemployment rate in construction dropped to 5.2% in Q4 2023.
- Migrant workers from Poland filled 15% of construction jobs in western Ukraine 2023.
- Safety incidents in construction: 1,200 reported, down 20% due to new regulations.
- Overtime hours averaged 15% of total work hours in construction firms 2023.
- Construction apprenticeships: 30,000 enrolled in 2024 programs.
- Construction firms total: 45,000 registered in 2023.
- Bricklayers employment: 250,000 workers in 2023 sector peak.
- Training centers for construction: 150 operational, trained 40,000.
- Wage growth in construction: 28% YoY to 22,500 UAH average.
- Foreign workers visas issued for construction: 50,000 in 2023.
- Productivity per worker: 1.8 million UAH output in 2023.
- Union membership in construction: 15% of workforce organized.
- Injury rate per 1,000 workers: 12 cases in 2023.
Employment and Workforce Interpretation
The Ukrainian construction industry in 2023 was a booming but straining engine: wages soared to become the highest in the nation and employment surged, yet nearly half its firms gasped for skilled workers, relying on a growing but still small brigade of women, a flood of foreign labor, and a heroic overtime schedule to keep the foundation from cracking.
Infrastructure and Public Works
- Road construction investments totaled 250 billion UAH in 2023, with 2,500 km of new roads built.
- Ukraine repaired 4,000 km of highways in 2023 under the "Affordable Roads" program.
- Railway infrastructure projects funded at 120 billion UAH, including 500 km electrification.
- Bridge reconstructions numbered 150 in 2023, costing 35 billion UAH total.
- Energy infrastructure construction post-damage: 180 billion UAH invested by mid-2024.
- Water supply and sewerage projects: 1,200 km pipelines laid in 2023.
- Airport runway reconstructions: 5 major airports upgraded at 20 billion UAH in 2023.
- Public building reconstructions: 2,500 facilities at 90 billion UAH since 2022.
- Port infrastructure developments: 10 terminals expanded, capacity +15 million tons.
- High-speed road construction: 1,000 km under "Big Construction" in 2023.
- School reconstructions: 500 schools rebuilt at 15 billion UAH in 2023.
- Hospital infrastructure upgrades: 300 facilities, 40 billion UAH invested.
- Gas pipeline repairs: 3,500 km restored post-damage in 2023.
- Public transport infrastructure: 200 km tram tracks renewed.
- Stadium constructions for Euro 2024 prep: 3 stadiums upgraded.
- Irrigation system reconstructions: 1,200 km canals built.
- Border crossing infrastructure: 15 new facilities constructed.
Infrastructure and Public Works Interpretation
While under relentless assault, Ukraine is not only steadfastly patching its critical wounds but ambitiously laying down arteries for a more connected and resilient future, pouring billions into everything from roads and rails to schools and hospitals.
Investments and Government Spending
- Foreign direct investment in construction FDI reached USD 2.5 billion in 2023.
- Government budget allocation for construction: 450 billion UAH in 2024 state budget.
- International aid for reconstruction: USD 15 billion pledged by EU in 2023.
- Private sector investments in infrastructure: 180 billion UAH in 2023 PPP projects.
- EBRD loans for construction firms: USD 1.2 billion disbursed in 2023.
- USAID funding for housing reconstruction: USD 500 million by 2024.
- Domestic bond issuances for construction projects: 100 billion UAH in 2023.
- World Bank grants for road construction: USD 800 million active in 2023.
- Venture capital in proptech for Ukraine construction: USD 150 million in 2023.
- State program funding "eRecovery": 30 billion UAH for private houses.
- IFC investments in construction banks: USD 400 million loans.
- PPP contracts signed: 25 projects worth 200 billion UAH.
- Green bonds for sustainable construction: 20 billion UAH issued.
- Diaspora remittances into construction: USD 3 billion estimated 2023.
- Regional development funds allocation: 100 billion UAH to construction.
- Digital tender savings in public procurement: 15 billion UAH for builds.
Investments and Government Spending Interpretation
Ukraine's construction industry is being rebuilt from the ground up by an impressively diverse coalition of international allies, determined private investors, and a resourceful diaspora, all while the government is desperately trying to keep pace with the paperwork.
Market Overview and Growth
- In 2023, the total value of construction works in Ukraine reached approximately 1.2 trillion UAH, marking a 15.2% year-on-year increase driven by reconstruction efforts.
- The construction industry's contribution to Ukraine's GDP stood at 4.8% in 2022, up from 3.9% in 2021 due to war-related rebuilding.
- Ukraine's construction market size was valued at USD 12.5 billion in 2023, projected to grow at a CAGR of 8.7% through 2028.
- Building permits issued in Ukraine increased by 22% in Q1 2024 compared to Q1 2023, totaling 14,500 permits.
- The volume of construction production in January 2024 grew by 18.9% year-over-year to 98.4 billion UAH.
- Ukraine's construction sector saw a 25.3% growth in new contracts in 2023, valued at over 900 billion UAH.
- In 2023, non-residential construction grew 32.1% YoY to 520 billion UAH.
- Construction output index reached 125.6% in December 2023 vs December 2022.
- Total engineering construction value: 280 billion UAH in 2023.
- Ukraine construction market forecast to hit USD 20 billion by 2027.
- Construction growth in Q2 2024: 20.5% YoY to 110 billion UAH.
- Total capital investments in construction: 1.5 trillion UAH in 2023.
- Sector's share in fixed capital investment: 28% in 2023.
- Export of construction services: USD 500 million in 2023.
Market Overview and Growth Interpretation
Even amid war's relentless demolition, Ukraine's construction sector is defiantly building its future, with a staggering 15.2% surge in 2023 proving that resilience, for now, is measured in poured concrete and issued permits.
Materials and Supply Chain
- Cement production for construction reached 18.5 million tons in 2023.
- Steel rebar imports for construction: 1.2 million tons in 2023, 60% from EU.
- Construction sand extraction volume: 25 million cubic meters in 2023.
- Brick production output: 2.8 billion units, up 10% YoY for construction needs.
- Asphalt production for roads: 4.5 million tons supplied to projects in 2023.
- Concrete production volume: 35 million cubic meters in 2023 construction sites.
- Timber usage in construction: 1.5 million cubic meters, mainly for residential.
- Price of ready-mix concrete rose 22% to 2,500 UAH/cum in 2023.
- Imported construction equipment: USD 1.8 billion in 2023, mostly excavators.
- Glass production for construction: 12 million sqm sheets in 2023.
- Reinforcement steel prices: 25,000 UAH/ton average 2023.
- Aggregate supply for concrete: 40 million tons quarried.
- Paint and coatings consumption: 500,000 tons for buildings.
- PVC windows production: 8 million sqm installed in constructions.
- Logistics costs for materials: 8% of total construction expenses.
- Local sourcing ratio: 75% of materials domestic in 2023.
- Electrical cables production: 1.5 million km for infra projects.
Materials and Supply Chain Interpretation
Ukraine's construction industry built with impressive local grit in 2023, mixing 75% domestic materials with a painful 22% price hike for concrete, while still managing to import enough equipment and rebar to keep the whole concrete jungle growing.
Residential Construction
- In 2022, residential construction accounted for 42% of total construction output, valued at 450 billion UAH.
- The number of new residential buildings completed in Ukraine in 2023 was 12,300 units, a 10% increase from 2022.
- Average cost per square meter for residential construction in Kyiv reached 25,000 UAH in 2023.
- Multi-family residential projects initiated in 2024 numbered 2,150, with a total floor area of 1.8 million sqm.
- In Lviv region, residential construction volume grew 35% YoY in 2023 to 45 billion UAH.
- Housing starts in Ukraine totaled 150,000 sqm in Q4 2023, up 28% from previous quarter.
- Private residential construction dominated with 68% share of total residential output in 2023.
- In 2023, 65,000 new apartments were commissioned across Ukraine, averaging 60 sqm each.
- Residential repair and reconstruction works post-2022 amounted to 120 billion UAH by end-2023.
- Housing commissioning floor area: 4.2 million sqm in 2023.
- Individual housing construction: 75,000 houses built in 2023.
- Average residential building height increased to 4.5 stories in 2023 urban areas.
- Mortgage-backed residential starts: 20% of total in 2023.
- Energy-efficient residential retrofits: 50,000 units funded in 2023.
- Rural residential construction volume: 80 billion UAH in 2023.
- Odesa residential market saw 25% price hike per sqm to 28,000 UAH.
- Total residential under construction: 5.5 million sqm as of 2024.
Residential Construction Interpretation
Despite the shadow of war, Ukraine’s residential construction sector is defiantly rebuilding, as evidenced by a 10% increase in completions, a 28% quarterly jump in housing starts, and private investors leading the charge with 68% of the output.
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