Key Results for the First Half of 2025
According to the State Statistics Service of Ukraine, the volume of construction work performed in January–June 2025 reached UAH 92.998 billion, showing an 8.15% increase compared to the same period in 2024.
However, the market showed uneven dynamics across different sectors:
-
🏘 Housing construction: the area of new apartment buildings grew by ~45–46% YoY to ≈2.86–2.97 million sq.m.
-
🏗 Non-residential buildings: construction volumes rose by ~29.5% YoY.
-
🚧 Engineering infrastructure (roads, communications, utilities): volumes fell by ≈17.8% YoY in January–May.
Main Problems in the Industry
Experts highlight several key challenges affecting the sector:
-
Demand lagging behind supply
-
Developers are actively launching new projects, but purchasing activity is not keeping pace with the growth in housing supply.
-
-
Rising costs and inflation
-
General inflation and higher construction material prices are driving up project costs and affecting completion timelines.
-
-
Labor shortages
-
A growing deficit of skilled workers threatens productivity and could slow down recovery in the medium term.
-
Forecasts for H2 2025 and Year-End
-
Industry growth: Annual expansion may reach ≈16% in nominal terms, largely due to the low 2024 base, international aid, and increased state financing.
-
Housing construction: Developers are expected to expand supply, particularly in Kyiv, Lviv, Ivano-Frankivsk, and other urban centers with resilient demand.
-
Infrastructure projects: The segment may remain weak unless government and international investment programs are accelerated.
-
Reconstruction and repairs: Programs focused on recovery after destruction and modernization of existing facilities may provide additional support to the market.
Outlook: Signs of Recovery with Structural Risks
The Ukrainian construction market in H1 2025 shows clear signs of recovery—especially in the housing segment, where construction volumes and business confidence are rising.
However, sustainability of growth remains limited due to:
-
Weak performance in engineering infrastructure.
-
Persistent price pressures and labor shortages.
-
Uncertainty around legislative and regulatory stability.
✅ Conclusion: If financing for infrastructure is expanded and demand-side support is introduced, Ukraine’s construction sector could become one of the main engines of post-war recovery.
