Wednesday, 13 August 2025 10:50 
🏗️🔍 The State of the Construction Sector in Ukraine in the First Half of 2025
Analytical data on this topic was presented during the CBU Business Club, held on July 23, 2025.
Andrii Mokriakov, Senior Consultant at Pro-Consulting, outlined the key factors that influenced the sector over the past six months and will continue to affect it in the next half-year:
🔸 GDP growth in the first half of 2025 – 0.9%;
🔸 the inflation index (6.5%) exceeds the construction price index (3.5%);
🔸 intensifying labor market shortages;
🔸 introduction of electronic permits and digitalization of construction processes;
🔸 resumption of lending under the eOselya program.
💬 “Overall, the volume of expenditures and revenues is not large enough for this growth difference to stimulate the market. This is because the vast majority of residential real estate investors are, rather, serial investors than the general population purchasing housing,” commented Mr. Mokriakov.
🏗️ Based on the results of the first half of the year, there was a decrease in the total volume of construction works from UAH 86 billion to UAH 82 billion (compared to the first half of 2024). However, the outlook is more optimistic for building construction.
At the same time, the industrial real estate segment declined, road construction volumes dropped by about 30%, as did the construction of power lines and other utilities.
📜 Separate analytics were presented on the number of issued building permits. A significant increase was observed in the share of permits issued in the eastern and southern regions (15.3% in 2024 vs. 19.3% in 2025). The share in the western regions also continues to grow (40.1% in 2024 vs. 45.8% in 2025).
Meanwhile, the share of permits issued in the central and northern regions has significantly decreased: 28% in 2024 vs. 18.5% in 2025.
🧱 As for the building materials market, there is generally a positive trend, particularly in metal products, a significant increase in the supply of cement, thermal insulation materials, and wall materials (brick, aerated concrete blocks). Growth is driven both by domestic production and imports.
The main forecasts and expectations for the future of the construction sector:
🔹 foreign investment in the sector;
🔹 price stabilization;
🔹 construction digitalization;
🔹 development of renewable energy and small maneuverable generation, energy independence;
🔹 development of the legal framework for public-private partnerships;
🔹 reconstruction projects;
🔹 war risk insurance.
War risk insurance is especially important, as it will provide compensation both for building construction and for new factories producing construction materials. This is particularly needed given the regular destruction of existing facilities in Ukraine.
💬 “We see potential in this, we see that it is very important for the market, but we are waiting for changes that will have a positive impact on the sector,” emphasized Mr. Mokriakov.
What else was discussed during the CBU Business Club:
🎥 Video recording of the first part (Ukrainian):
https://www.youtube.com/live/elRWrlPiTS0
Strategic business-partners of the CBU: East Office of Finnish Industries Oy, SKAKO Concrete A/S, NOCON NORWEGIAN CONSTRUCTION AS, VERONA SHELTERS GROUP OY
Information partners: ProfBuild, Build Portal, Property Times, RBC-Ukraine, Ukrainian Pohliad, Ukrainian National News, StroyObzor, NewsWeek, Marketer, Budynok.com.ua, Economist.com.ua, Founder
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