Construction in Ukraine: results of 2017

In late October the World Bank released new results of authoritative international rating of ease of Doing business. According to its results Ukraine went up by 4 positions and took the 76th place among 190 countries of the world, in terms of "obtaining permits for construction" of the record has improved its position and ranked in the top 40 countries.

Based on Center dimension of public monitoring and control, the last big construction boom in Ukraine occurred in 2011, when the country was preparing to host the football championship "Euro-2012".

Then the pace of construction began to decline, constant growth at 3.5-10% per year was maintained only in the residential sector.

However, in 2016, the State statistics service of Ukraine for the first time in four years recorded a growth of volumes of construction works in all segments of construction. This phenomenon is observed in this year.

Total growth for the 10 months of 2017 amounted to 23%, and in particular, the construction of residential buildings increased by 13%, residential 27%. Construction of engineering structures has grown by almost a third – 28%. In monetary terms, the total amount of work amounted to 73.5 billion.

The surge in construction activity has affected the cost of square meters. According to the President of the Union of realtors of Ukraine Viktor Nesin, this year in the capital primary housing market was possible to buy an apartment at the price of 500-600 dollars. per square meter even cheaper. This situation plays into the hands of consumers, however, unfavorable to developers. According to estimates of realtors, the proposal in the largest cities of Ukraine, including in the capital, exceeds the demand tenfold.

"During the construction of 200 apartments failed to sell, the only year 10. So in the next two to three years, we will see a lot of frozen construction objects" – suggests the expert in real estate matters Yaroslav Tsukanov.

Among the negative trends, the experts also called the chaotic development of human settlements. Modern builders often neglect General urban plans and need to develop the surrounding infrastructure, and often destroy green spaces and degrade the architectural look of cities.

According to the materials of the Center for public monitoring and control