The cost of housing construction increases by 14.9% annually

Average annual indicators of the mediated cost of housing construction by region in Ukraine in January 2022 amounted to UAH 16,003 per square meter, in January 2023 they had already increased to UAH 20,259 per square meter, and in April of the current year they amounted to UAH 21,546 per square meter. m. Based on the data of the Statistical Service of Ukraine, State Statistics Office of Kyiv and State State Administration of Kyiv region, in the current year there is an increase in the cost of construction of residential areas and an increase in the offer price on the primary market of residential real estate. UTG writes about it.
According to experts, the cost of housing construction dynamically increases by 14.9% annually due to changes in the cost of building materials, wages for workers, the introduction of modern technologies (panoramic glazing, hinged facade systems), autonomous and advanced engineering systems (heat pumps, generators, solar panels, air conditioning, ventilation, central vacuum cleaner). Also, the evolution of conceptual projects, the relocation of residents from rich regions, a large competitive offer, and the demands of real buyers for materials and communities contribute to the increase in cost.
As a result, the average annual indicators of the mediated cost of housing construction by region in Ukraine in January 2022 amounted to UAH 16,003 per sq.m., in January 2023 they had already increased to UAH 20,259 per sq.m., and in April of the current year they amounted to UAH 21,546 per sq.m. sq.m. At the same time, the cost of housing construction in the capital market shows higher indicators than in the country as a whole. Thus, in January 2022, the construction of a square meter of housing in Kyiv cost UAH 18,704, in January 2023 it was already UAH 23,679, and in April of the current year - UAH 25,183 per square meter.

The increase in the cost of housing construction is facilitated by the order of the Ministry of Development of Communities and Territories of Ukraine No. 72 dated 04-23-2024, which approved and recommended the use of forecasted average annual indicators of the mediated cost of housing construction by region of Ukraine as of 04/01/2024. The indicators refer to the total area and do not take into account: the cost of attracting land (+8-15%), advertising, marketing and costs for the promotion of the complex, the cost of attracting financial resources, the costs of organizing the work of the sales department and some other items. In order to correctly estimate the cost of 1 square meter of sales area (GSA), it is necessary to additionally introduce a correction for losses of MZK, corridors, passages, stairwells, elevator units, etc. (+20–25%).
Against the background of rising housing costs, the average offer price on the primary market of residential real estate in the regions of Ukraine for September 2024 was the highest in Kyiv - $1,300 per sq.m or UAH 53,600, in Lviv - $1,400 or UAH 58,000 per sq.m. and the lowest in Kharkiv - $690 or UAH 29,000 per square meter.
Based on this, it can be concluded that, firstly, most of the regions far from the war zone will continue to show continued growth in prices for residential real estate. Secondly, in large cities, such as Kyiv, Kharkiv, Odesa, Dnipro, demand remains restrained: residents are in no hurry to return home (especially women with children), and the issue of buying a new home is postponed, even with existing financial capabilities. Thirdly, price growth is pressured and significantly influenced by changes in the cost of construction and installation works and materials.

https://budport.com.ua/news/29793-sobivartist-budivnictva-zhitla-schorichno-zrostaye-na-149