According to the preliminary results of the first half of 2026, the construction industry of Ukraine shows mixed dynamics: after growth in 2023-2025, the sector faced a slowdown in the volume of work, rising construction costs, a shortage of personnel and a shift in demand towards the restoration of housing and infrastructure.
The State Statistics Service has not yet published the final data for January-June, so the current the assessment can be made on the basis of statistics for the first four months, data on the commissioning of housing in the first quarter, the "eOselya" and "eRecovery" programs, as well as the expectations of construction enterprises for the second quarter.
According to the State Statistics Service, the volume of construction work in Ukraine in January-April 2026 decreased by 2% compared to the same period in 2025 and amounted to UAH 59.3 billion. At the same time, from April to April 2025, construction has already shown growth by 2.8%, in particular, residential construction increased by 5.8%, engineering structures - by 9.7%, while non-residential construction decreased by 7.4%. The share of new construction in April was 47.8%, repairs - 29%, reconstruction and other works - 23.2%.
For comparison, in 2025, the volume of completed construction works in Ukraine increased by 11.3% - to 258.2 billion UAH, but the growth rate even then slowed down after 17.8% in 2024 and 31.8% in 2023 year In 2025, residential construction grew by 13.5%, non-residential - by 25.4%, engineering - by only 3.1%.
"The construction sector in the first in the first half of 2026, it actually moved from the phase of rapid post-shock recovery to the phase of selective growth. Housing, repairs, engineering infrastructure and projects related to reconstruction remain the most stable. At the same time, commercial non-residential construction remains weaker due to war risks, more expensive financing and uncertainty for investors," noted the founder of the Experts Club analytical center, Candidate of Economic Sciences Maksym Urakin.
The residential segment looks more stable than the general dynamics of the industry. In the first quarter of 2026, housing commissioning in Ukraine decreased by only 0.1% year-on-year - to 2.289 million square meters. m. During this period, 29,600 apartments were built, which is 4.3% more than in the first quarter of 2025. The largest volumes of introduced housing were recorded in the Lviv, Odesa, Ivano-Frankivsk, Zakarpattia and Ternopil regions, and 289,000 square meters were introduced in Kyiv. m of housing, or 4.9 thousand apartments.
State programs remain one of the key sources of housing demand. According to the Ministry of Economy, as of June 22, 2026, since the beginning of the year, 4,104 Ukrainian families have used the "eOselya" program, which received preferential mortgage loans for almost UAH 7.7 billion. In just one week of June, 157 loans for UAH 313 million were issued, and the majority of new loans were for first-sale homes. As of June 2026, 206,447 Ukrainian families received assistance for the repair or purchase of a new home for a total amount of UAH 103.9 billion. More than 138,000 families received payments for the repair of damaged housing, almost 65,000 families received housing certificates for destroyed property, and a separate area of reconstruction on their own land is already financed through tranches.
At the same time, the industry faces significant price pressure. According to the summary table of price indices for construction and installation works, in April 2026 the price index in construction was 103.1% before March, after 109.4% in March, 101.8% in February and 101.1% in January. The accumulated indicator for the first four months of 2026 was 116.1%, which indicates a significant increase in the price of works and material resources.
Business expectations of construction enterprises remain cautious. According to the State Statistics Service survey for the II quarter of 2026, the indicator of business confidence in construction improved compared to the I quarter by 1.9 percentage points, but remained deeply negative - minus 25.7%. The current volume of orders was estimated at minus 41.5%, and expectations for the number of employees - minus 9.9%. The main restraining factors of the enterprises were the lack of labor force, financial restrictions and other factors, while the supply of orders was estimated for an average of six months of work.
At the macro level, the main long-term driver of the industry remains the recovery of the country. According to the assessment of the World Bank, the government of Ukraine, the European Commission and the UN, Ukraine's needs for restoration and reconstruction for the next ten years are already estimated at almost $588 billion. Direct losses reached $195 billion, and housing, transport and energy were the most affected. The damage to the housing sector alone is estimated at approximately $61 billion, and about 14% of the housing stock has been damaged or destroyed.
According to the Experts Club estimate, in the second half of 2026, the construction industry of Ukraine will remain dependent on three key factors: the security situation, access to financing, and the stability of state recovery programs. Housing projects in rear regions, reconstruction of damaged housing, engineering infrastructure, energy sustainability of communities, social housing and critical infrastructure facilities will have the greatest potential.
"Ukrainian construction cannot be evaluated only by the current index of completed works. It is no longer just a sector of the economy, but one of the key tools for survival, the return of people, the restoration of communities and the country's future investment attractiveness. But for the transition from repairs to large-scale modernization, long-term money, war risk insurance, transparent project pipelines and personnel are needed," Maksym Urakin emphasized.
Thus, the first half of 2026 for the construction industry of Ukraine can be tentatively assessed as a period of stabilization after the rapid growth of previous years. The market is not showing a steady upturn, but has significant structural demand related to housing, recovery, infrastructure and future post-war reconstruction. For business, this means a transition to more selective competition - companies with access to financing, qualified personnel, a transparent estimate base and the ability to work with state and international reconstruction programs will win.
