Completed construction works in Ukraine increased by 18.4% y/y for the first half of the year

In January-June 2023, the index of completed construction works in Ukraine increased by 18.4% compared to the same period in 2022. The volume of completed construction works during this period in monetary terms reached UAH 53.2 billion. This is evidenced by State Statistics Service’s data.

In June 2023, construction increased by 38.6% compared to June 2022, and by 4.5% compared to May 2023.

Engineering structures became the driver of construction growth in January-June. The indicator increased by 34% y/y. At the same time, residential construction decreased by 5.9% y/y, and non-residential construction increased by 9.5% y/y. In monetary terms, residential construction reached UAH 8.92 billion, non-residential construction – UAH 13.7 billion, and construction of engineering structures – UAH 30.6 billion.

In June, residential construction grew by 16.2% y/y and 20.4% m/m, non-residential – by 28.4% y/y and 6.3% m/m. The construction of engineering structures increased by 54.9% y/y, but decreased by 0.7% m/m.

The share of new construction in the total amount of completed construction works for the six months was 44.3%, repairs – 32.8%, reconstruction and technical re-equipment – ​​22.9%.

The growth of engineering construction is related to the restoration of transport and industrial facilities destroyed by Russian military aggression, as well as bridges, overpasses, roads, railways, pipelines, communications, power lines and other infrastructure and engineering structures. At the same time, a large share of new construction corresponds to the scale of destruction, which is not amenable to partial repair or reconstruction.

As GMK Center reported earlier, in 2022 construction enterprises of Ukraine reduced the volume of completed works by 56% compared to 2021 – to UAH 113.83 billion. In December 2022, the indicator fell by 58.9% y/y. Residential construction decreased by 51.9% y/y, engineering – by 58.5%, and non-residential – by 53.5%.