New Construction Market in Ukraine in 2025: How the War Changed the Construction Map
In 2025, Ukraine's construction sector is rebounding — but unevenly. While western and central regions show notable growth, cities near the frontline remain in stagnation. Experts point to Kyiv, Odessa, Volyn, and Ternopil as the most undervalued and promising regions for real estate investment.
Has Residential Construction Really Resumed?
Yes — but only partially. The western regions have shown the fastest recovery, with construction activity nearly returning to pre-war levels. Projects in Lviv, Ternopil, Ivano-Frankivsk, Zakarpattia, Volyn, Rivne, Khmelnytskyi, and Chernivtsi have resumed, often within 3–6 months after the full-scale war began.
Kyiv is also experiencing strong growth, with construction resuming by around 70%, fueled by internal migration. However, competition from the secondary market — offering move-in-ready apartments at the same price as unfinished new builds — is slowing some projects.
Meanwhile, Kherson, Kharkiv, Dnipro, and Sumy show minimal or symbolic construction activity. In Kharkiv, although 15% of projects claim to be active, actual on-site work is visible in just 5%.
2025 Regional Construction Overview
| Region | Status in 2025 |
|---|---|
| Western regions | Near full recovery, pre-war levels restored |
| Kyiv | ~70% recovery; high demand, competitive market |
| Odessa | Underestimated, with growing prices |
| Kharkiv / Kherson | Severe stagnation, minimal construction |
| Dnipro / Sumy | Limited activity, psychological barriers |
Where to Invest in 2025
Despite the war, investment in new buildings remains viable, especially in strategic regions. Experts recommend focusing on:
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Kyiv and Odessa – Underestimated markets with high long-term growth potential
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Volyn and Ternopil – Stable pricing, early growth stage
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Avoiding overpriced areas like Zakarpattia and Ivano-Frankivsk, where prices are inflated by temporary demand
“Prices in Zakarpattia already exceed their real value. In contrast, Volyn and Ternopil are only beginning their upward trajectory,” says a real estate expert.
Tips for Buying Apartments in New Buildings
1. Check Developer Reputation:
Choose companies with a strong market history — but still verify permits and documents. Past bankruptcies like “UkrBud” or the collapse of bank “Arkada” prove that no developer is risk-free.
2. Prioritize One-Room Apartments for Investment:
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Easier to sell or rent
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Higher demand
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Flexible rental income
Golden rule: three one-room apartments > one large apartment (in terms of liquidity and ROI)
3. Optimal Sizes:
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1-room: ~40 m²
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2-room: 60–70 m²
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Avoid ultra-small “micro-apartments”
4. Location Strategy:
Tailor your choice based on investment goals: short-term rental vs. long-term resale, regional trends, and security forecasts.
What to Expect Post-War
The fastest recovery is expected in:
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Kyiv and Odessa – “They will take off immediately after peace or airspace safety is restored.”
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Kharkiv and Dnipro – Will follow, driven by strong industrial and demographic bases
In Uzhhorod, construction activity has doubled during the war — but it’s driven by external developers and won’t last, warns the expert. A similar drop is expected in Ivano-Frankivsk.
In contrast, Lviv’s market is more stable, fueled by consistent local demand — not just foreign buyers.
Conclusion: Strategic Investing is Key
In 2025, investing in new buildings in Ukraine requires a long-term view and regional analysis. The war has reshaped the market map, but early investors in undervalued cities like Kyiv, Odessa, Volyn, and Ternopil could see significant returns once peace brings a full recovery.
“Security drives demand, and demand drives construction. Think beyond the current situation — and you’ll be ahead of the curve.”
