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Rising construction costs can increase infrastructure recovery budgets

Editorial team•
Rising construction costs can increase infrastructure recovery budgets

The cost of construction and assembly works during the construction of engineering facilities in Ukraine in June 2026 increased by 24.3% compared to June last year — this is the highest indicator among the main construction segments. According to the State Statistics Service, non-residential construction over the same period rose in price by 23.8%, residential - by 19.2%. On average, the growth in the construction industry was 23.1%.

Engineering construction was also in the lead according to the monthly dynamics. In June, compared to May, prices here increased by another 1.8% against 1.3% in non-residential construction and 0.8% in residential construction.

In the second quarter of 2026, engineering construction and assembly works cost 22.4% more than in April-June last year. A similar increase — by 22.4% — was recorded in non-residential construction, while residential construction rose in price by 18.2%.

The quarterly dynamics are particularly revealing. Compared to the first quarter, the prices for engineering works in the II quarter increased by 12.4%, for non-residential works - by 12%, while the growth in the residential sector was only 0.4%.

According to the owner and director of the Rauta engineering and construction company Andriy Ozeychuk, one of the key factors of pressure on the cost of construction remains the shortage of qualified workers.

"Currently, the market lacks about 30% of construction specialists. specialties," said Ozeychuk, commenting on the situation in the industry in February 2026.

According to his data, the lack of personnel has already led to a noticeable acceleration of wage growth. If in 2022-2024 salaries in construction grew by an average of about 15-20% every year, then in 2025 the growth rate reached 25-30%. The wages of monolithic workers increased significantly - by 50%, surveyors - by 44%, concrete workers - by 38%.

Thus, the current increase in the cost of construction works is formed not only under the influence of prices for construction materials and equipment. The cost of direct construction works and human labor plays an increasingly important role.

Ozeychuk also drew attention to the long-term nature of the personnel problem. According to him, professional educational institutions face both a shortage of students for construction specialties and their outflow already in the first years of study.

"In the long run, this may lead to an even greater shortage of personnel and slow down the recovery of Ukraine," says the owner of the Rauta company.

According to the company's estimates, the personnel shortage is already forcing the construction business to look for workers outside of Ukraine, in particular in India, Nepal, Bangladesh and Pakistan.

The increase in the cost of engineering construction is of particular importance for Ukraine due to the large-scale need to restore energy, transport, communal and other critical infrastructure. According to Rauta's assessment of the results of 2025, the segment of restoration and protection of critical infrastructure objects already accounted for about 20% of the Ukrainian construction market.

Therefore, the further increase in the price of engineering works may directly affect the estimates of restoration projects. If the cost of construction and installation works increases by 20-25%, projects whose budgets were formed much earlier may require additional financing or revision of technical solutions and implementation terms.

At the same time, it is the non-residential and infrastructural construction remain one of the most active areas of the market. In 2025, the main objects for investment in commercial real estate were warehouses, production and trade buildings, and the most attractive regions for new construction were Kyiv, Lviv and Ivano-Frankivsk regions, Ozeychuk noted.

During the first half of 2026, engineering construction rose in price by 16.1% in annual terms, non-residential construction by 16.5%, residential construction by 16.5% by 13.7%.

Rauta works in the field of design, construction and installation of buildings and is a member of the European Association of the Construction Industry. According to the data of the Unified State Register, the owner of 100% of the authorized capital of the company is Andriy Ozeychuk.