Research on Ukraine’s construction industry: challenges and opportunities

On June 27, 2024, the Kyiv School of Economics (KSE), initiated by the European Business Association, presented the results of the study “Structural Changes and Challenges in Ukraine’s Construction Industry: Analysis and Forecasts.” This study assesses the pre-war state of the construction sector and the impact of the full-scale invasion on it. Specifically, analysts examine the level of destruction of Ukrainian infrastructure and identify the necessary materials for its reconstruction.

According to the World Bank, the total cost of rebuilding and recovery in Ukraine amounts to $486 billion. To restore part of the infrastructure mentioned in World Bank reports, approximately $65 billion is needed solely for building materials. At the same time, the vast majority of the necessary building materials can be produced in Ukraine, which will help reduce costs, create new jobs, and increase state budget revenues.

Experts note that over 90% of the necessary building materials can be produced in Ukraine. Among the most important materials for reconstruction are cement, concrete, metal structures, bricks, glass, and thermal insulation materials. This will promote the development of domestic production capacities, which in turn will create additional jobs and support the economy.

“Current investments are crucial, but additional billions are needed to restore Ukraine’s infrastructure and economy. It should be noted that investments, in particular, will contribute to the development of domestic production capacities, creating new jobs and supporting the economy,” said Maksym Nefyodov, Director of Innovative Solutions at the KSE Institute.

Restoring infrastructure requires significant investments. In particular, the CRH group, one of the largest building materials manufacturers, has already invested $80 million in Ukraine’s construction sector during the full-scale invasion. The Irish company Kingspan plans to invest $300 million in the “Sírsa” project (Irish for Freedom), which involves the construction of a production campus in western Ukraine by 2026.

Ukrainian businesses are also actively investing in the construction sector. The development company City One Development has started building a glass factory in the Kyiv region, valued at €100 million. This is the only similar project in Ukraine after the previous plant was destroyed in 2014.

The study by the Kyiv School of Economics emphasizes the importance of rebuilding Ukraine’s infrastructure and the need for significant investments in this process. The use of domestic building materials, support for local producers, and attracting international investors are key elements for the successful recovery of the country.

The DOMOVA platform plays an important role in this process, offering unique solutions for uniting property owners and attracting investments. This will contribute to the development of the Ukrainian economy, the creation of new jobs, and the restoration of the housing stock.