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Construction in Ukraine - Key Trends, Opportunities and Forecasts to 2021

05-29-2017 07:50 PM CET | Industry, Real Estate & Construction

Press release from: Construction Market Reports - MRH

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In real terms, the Ukrainian construction industry recovered in 2015 after registering a gloomy performance in 2014 owing to the economic recession. Weak construction activity in 2014 was a result of various factors such as the country's high public debt, widespread corruption and currency devaluation, which forced the economy into recession.

However, the industry gained pace in 2015, supported by improvements in regional economic conditions. In addition, significant aid from financial organizations such as the International Monetary Fund added momentum to government efforts to boost economic growth. The industry's expansion continued in 2016 as the government announced plans to upgrade the country's aging infrastructure.

The industry is expected to continue to expand over the forecast period (20172021) as the government continues to implement major structural reforms to revitalize the economy. The governments large-scale investments in transport, energy and residential infrastructure projects are also expected to drive industry growth over the forecast period.

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The industry's output value in real terms increased at a compound annual growth rate (CAGR) of 11.44% during the review period (20122016), and is expected to post a CAGR of 16.59% over the forecast period.

Timetrics Construction in Ukraine Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Ukrainian construction industry, including:

The Ukrainian construction industry's growth prospects by market, project type and construction activity

Analysis of equipment, material and service costs for each project type in Ukraine

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Ukrainian construction industry

Profiles of the leading operators in the Ukrainian construction industry

Data highlights of the largest construction projects in Ukraine

This report provides a comprehensive analysis of the construction industry in Ukraine. It provides:

Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Ukraine using construction output and value-add methods

Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

Analysis of key construction industry issues, including regulation, cost management, funding and pricing

Detailed profiles of the leading construction companies in Ukraine

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Reasons To Buy
Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.

Assess market growth potential at a micro-level with over 600 time-series data forecasts.

Understand the latest industry and market trends.

Formulate and validate strategy using Timetric's critical and actionable insight.

Assess business risks, including cost, regulatory and competitive pressures.

Evaluate competitive risk and success factors.

Key Highlights
According to the State Statistics Service of Ukraine, the country's overall construction production index rose by 33.9%, from 87.7 in 2015 to 117.4 in 2016. This was preceded by a decline of 10.6% in 2014 and an increase of 10.2% in 2015. This indicates an improvement in the country's construction activity and therefore contributes to a positive outlook for the construction industry in the coming years.

The construction production index for residential buildings grew by 19.1%, from 98.9 in 2015 to 117.8 in 2016, while for non-residential buildings it rose by 44.2%, from 85.8 in 2015 to 123.7 in 2016. In terms of civil engineering activity, the construction production index registered an increase of 36.2% from 83.7 in 2015 to 114.0 in 2016.

In November 2016, the Ministry of Infrastructure of Ukraine announced plans to develop public transport infrastructure in major cities, including Kiev, Kremenchuk, Odessa, Chernihiv, BilaTserkva, Kharkiv, Ivano-Frankivsk, Ternopil, Lutsk, Sumy and Lviv. The plan includes the construction and the upgrade of bus lanes, depots, tram lines and stations.

The country's strategic location is attracting foreign investors. In January 2017, CT Park Network, a major developer of business parks in Central Europe, announced plans to construct an industrial park near the M-10 highway. The project includes the construction of several factories and warehouses on a 23.0ha site.

In January 2017, the government announced plans to develop 54 solar energy projects in the country with a total installed capacity of 460.0MW. Moreover, the government also announced a feed-in tariff of UAH0.15 (US$0.01) per KWh for all solar energy projects developed between 2017 and 2019. This is expected to accelerate the pace of investments in the solar sector.

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