The construction market of Ukraine: industry status, challenges, and development prospects

Abstract

The purpose of this study is a comprehensive analysis of the development of Ukraine’s construction market under conditions of military aggression, with a focus on regional specifics, institutional barriers, and innovations. The relevance is justified by the key role of the sector in the country’s recovery, infrastructure modernization, and meeting the housing needs of the population during wartime. Methods. The study applies a systemic and structural-analytical approach to analyzing the market in 2020–2024, along with methods of comparative analysis, monitoring, and statistical data processing. Research results. Three stages of sector development have been identified: growth (2020–2021), decline (2022), and adaptive recovery (2023–2024). A shift from residential to engineering construction has been observed, as well as a relocation of activity to western regions due to security factors, internal migration, and infrastructure access. In 2024, the volume of completed housing significantly exceeds the volume of new construction starts, indicating a “construction inertia” effect and weak investment dynamics. Regional factors of investment attractiveness have been assessed, including safety level, infrastructure accessibility, institutional capacity of communities, solvent demand, and the availability of donor funding. The highest construction activity is observed in communities combining effective administration with active public-private cooperation. The study also identifies a range of issues: limited official statistics for 2022–2024, a high share of the shadow market, information asymmetry between regions, and a lack of in-depth analysis of qualitative sector characteristics. The need for regionally adapted recovery strategies that account for local context is emphasized. Conclusions confirm the adaptability of Ukraine’s construction market to external challenges while also highlighting the need to strengthen public policy in supporting innovation, overcoming institutional barriers, and stimulating new investments.