Construction works performed in Ukraine increased by 40.3% y/y in Q1

The index of construction work performed in Ukraine in the first quarter of 2024 increased by 40.3% compared to the same period in 2023. The volume of construction work performed during this period in monetary terms reached UAH 35.52 billion. This is according to the State Statistics Service.

The driver of construction growth in January-March was engineering structures. The indicator in this sector increased by 48.2% y/y. At the same time, residential construction also increased by 25.1% y/y, and non-residential construction – by 34.4% y/y. In monetary terms, residential construction reached UAH 5.57 billion, non-residential construction – UAH 8.93 billion, and construction of engineering structures – UAH 21 billion.

The share of new construction in the total volume of construction work performed in the last quarter amounted to 46.7%, repairs – 25%, reconstruction and technical re-equipment – 28.3%.

The growth in engineering construction is due to the restoration of transport and industrial facilities destroyed by the 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 damage that cannot be partially repaired or reconstructed.

As GMK Center reported earlier, the index of construction works in Ukraine increased by 22.6% in 2023 compared to 2022. Construction of engineering structures increased by 2.9% y/y. At the same time, residential construction decreased by 4.6% y/y, while non-residential construction increased by 20% y/y. The share of new construction in the total volume of construction work performed last year amounted to 36.3%, repairs – 42.9%, reconstruction and technical re-equipment – 20.8%.