According to experts’ estimates, the supply of new housing in the country reached its peak in 2021 – 11.4 million square meters were commissioned of housing. But after the full-scale invasion, almost all developers stopped work, as a result of which in 2022 the total area of ​​commissioned housing amounted to only 7.1 million sq m. This was reported by the UTG company.

As experts note, the reduction in the volume of the new offer took place practically throughout the territory of Ukraine, with the exception of a few western regions. It is clear that the largest decline in construction was experienced in the eastern and southern regions: there the volume of commissioning of new housing fell by 70-90% compared to the previous year.

At the same time, the cost of construction increased. Yes, according to calculations, if in January 2021 the average cost of construction of 1 sq m of the total area of the building was UAH 13,200, then in October 2022 the price already reached more than UAH 19,000. Therefore, there are several reasons:

• firstly, the increase in construction costs occurred due to the destruction of some factories – manufacturers of construction materials;
• secondly, due to the complication of raw material supply chains;
• thirdly, due to the devaluation of the hryvnia and additional costs for ensuring work during power outages.

In addition, non-trivial architectural design, the introduction of modern technologies: panoramic glazing, hinged facade systems, advanced engineering systems (central air conditioning, ventilation, vacuum cleaner, etc.) cause the annual increase in the cost of construction. Also, against the background of a large offer, the requirements of real buyers for materials, public areas and infrastructures are increasing.