Cost of housing construction increases by 30%, end consumers dominate among buyers - expert
Since the beginning of the war, the cost of housing construction has increased by 30%, the share of investment transactions has decreased, end consumers dominate among buyers of primary housing, said Arseniy Nasikovsky, junior partner of the DIM group of companies.
"Depending on the class of the project, the cost of construction has increased by 10-30%. At the same time, there is a significant shortage of qualified labor. For example, DIM is currently completing a 33-story building, and we are forced to involve several companies at once to complete the interior decoration of the complex," he noted during a speech at the International Invest Summit 2025, which took place in Lviv on July 4-5.
At the same time, according to him, in Kyiv, the interest of investors in the primary market has decreased. If before the full-scale war, 60% of sales were generated by investors at the early stages of construction, now the end consumer prevails.
"The reason is not a lack of funds or a decrease in the number of buyers. It's just that the cost of primary housing often exceeds the prices of finished objects on the secondary market nearby. The developer cannot sell below the cost price, which has increased from 10% to 30%," the expert explained.
According to the junior partner of the DIM group of companies, after the war, residential real estate will remain the main investment segment, especially in the business and premium segments in the center of the capital.
"With the beginning of the full-scale invasion, many developers in Kyiv have switched to working in the economy-class segment, where a square meter costs up to $1,000. Many projects are appearing in this segment, in particular, in Irpin, Bucha and other suburbs of the capital. However, an extremely high price increase is unlikely in these segments," Nasikovsky noted.
As for the capital, especially the center, demand will grow in conditions of a limited supply of plots. This will contribute to a significant increase in prices in premium clubhouses - up to $7,000-8,000 or even $10,000 per sq m.
The portfolio of the development company DIM consists of real estate in Kyiv and the region with a total area of over 900,000 sq m. More than 3,600 apartments have been put into operation, more than 356,000 sq m of residential and commercial space has been built. Six projects with a total area of over 346,000 sq m are under construction.
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