New housing construction in Ukraine has slowed down significantly

New housing construction in Ukraine has slowed down significantly, which may lead to a shortage of new apartments in the near future, especially in the capital. According to an analytical report by the National Bank, the new construction market is under great pressure, and this is affecting the overall condition of the country's housing stock.

Despite the fact that the amount of housing already for sale remains sufficient, the process of replenishing the market with new buildings is very slow. This leads to a decrease in the supply of new apartments, which is especially noticeable in Kyiv, where the construction of new residential complexes is almost non-existent. According to analysts, the problem lies in limited resources, in particular, in the shortage of labor, which makes it difficult to quickly complete construction projects.

According to the Financial Stability Report, new residential complexes appear much more often in western Ukraine than in Kyiv. In the capital, the bulk of construction is focused on completing existing queues of residential complexes. Most new projects are limited to completing previously started complexes.

“Construction continues with significant delays due to a lack of resources, and in the capital, developers are more likely to focus on completing elite business-class complexes, leaving cheaper housing or complexes with almost sold-out apartments for later stages,” the NBU report states. This also leads to some projects being frozen due to low demand for cheaper housing.

At the same time, the volume of housing commissioning across Ukraine in 2024 is approaching pre-war levels, but the pace of construction of apartment buildings has significantly decreased. Less than a fifth of the housing projects that are on sale have already been completed. Accordingly, the number of new projects on the market continues to decrease, and real estate stocks are not replenished as quickly as before.

According to the LUN portal, since the beginning of 2025, the number of housing complexes waiting for sale has increased by 10%. However, despite the increase in the number of objects, new construction will not occur as quickly as before. The main reason is the prolonged uncertainty of the situation and security threats, which reduce investment activity and limit opportunities for the development of new housing.

NBU analysts predict that the risk of a shortage of quality new housing in the near future remains, and the market may experience a lack of new offers, especially in conditions of constant economic and security instability.