Construction in Ukraine in 2023 is half of the pre-war level

The industry is supported by orders for the restoration of various infrastructure facilities

Construction works in Ukraine last year increased by 22.6% – to UAH 162.7 bln. Significant growth rates are explained by the effect of a low base of comparison, as in 2022 construction works decreased by 65% year-on-year.

In the context of individual segments, the dynamics were multidirectional in 2023:

• residential construction – decrease by 4.6% y/y, to UAH 22.3 bln;
• non-residential construction – growth by 20.0% y/y, up to UAH 41.6 bln;
• engineering constructions – growth by 32.9% y/y, up to UAH 98.8 bln.

In general, the total volume of construction works in 2023 was 52.2% lower than in pre-war 2021. Similar dynamics were observed in all market segments: residential construction – down 56.6%, non-residential construction – down 50.4%, engineering construction – down 51.8%.

In the segment of engineering construction, social infrastructure facilities, bridges, roads, communications, power lines, etc. destroyed due to the Russian military aggression are being restored, and there is a change in the structure of expenditures. In particular, the share of expenditures on repair and construction of bridges increased from 1.8% in 2021 to 8.5% in 2023, while the share of expenditures on construction and repair of roads decreased from 54.1% to 24.8% over the same period.

The growth in the volume of work to restore destroyed engineering, transportation and social infrastructure facilities led to an increase in demand last year for steel products in the construction segment. The consumption of rebar doubled, galvanized rolled products – by 47%, beams, channels and angles – by 38%. In total, steel consumption in Ukraine in 2023 increased 2.2 times to 3.5 million tons. This figure is 31.4% less than the pre-war level (2021).

Despite the decline in the volume of work in housing construction, the total area of commissioned housing in 2023 increased by 4% to 7.38 million square meters. m. In turn, the area of accepted non-residential premises last year decreased by 6% – to 2.34 million square meters. m.

In 2023, the share of new construction to the total volume of completed construction works amounted to 36.3%, repair – 42.9%, reconstruction and technical re-equipment – 20.8%.