Construction Crisis: Most Residential Complexes from the War Period Remain Undeveloped.

Over the last three years, the real estate market in Ukraine has significantly deteriorated in terms of the overall state of the construction industry and the responsibility of developers.

This concerns how timely residential facilities are commissioned during the invasion, reports Delo.ua.

'Of 1597 queues, the commissioning of which was declared earlier and fell during the full-scale invasion (from Q2 2022 to Q3 2023), only 42% have been commissioned to date. However, 58% are not only late but have not been commissioned at all,' said Oleksandr Pavlov during the RED by LUN analysts' meeting 'Year-2024 Summary'.

Only 15% of commissioned facilities were handed over on schedule, and 27% were completed with a delay of six months, one, or two years.

'However, the most concerning statistic is the non-commission rate: 30% of 1600 objects remain at risk as the queues for commissioning have been postponed for an unknown period,' emphasized Pavlov.

In addition to these 500 objects that are in the 'risk zone', there are also queues for commissioning that have currently been postponed for 1-2 years.

Since the beginning of the war, sales have been launched in 479 residential complexes, indicating an active primary market,' highlighted Oleksandr Pavlov. However, in 2024, construction activity in Ukraine remains half of what it was in the pre-war years of 2020-2021. The map of the most active construction regions has also fundamentally changed.

According to LUN, during the full-scale war, the most residential complexes were launched in the Lviv region. With a significant lead, Kyiv and the region are in second place. The top five most active in construction also includes the Transcarpathian, Ternopil, and Ivano-Frankivsk regions.