The construction and real estate sectors are pivotal to Ukraine’s economic development. They satisfy domestic demand, create employment opportunities and contribute to the modernisation of infrastructure. Despite the challenges currently being faced by these sectors, they remain of critical strategic importance, as they meet residential and commercial needs and contribute to the country’s investment potential.
From January to October 2024, Ukraine’s gross domestic product (GDP) grew by 4.2% year-on-year. The primary contributors to this growth were construction, transport and manufacturing. The government’s recovery programmes, designed to address the consequences of the hostilities, have increased demand for construction work and supported the expansion of the sector.
The construction industry employs a large number of people, contributing to the development of related sectors, including construction materials, transport and services. Its growth creates favourable conditions for the country’s economic development and social progress. According to the State Statistics Service of Ukraine, the construction industry employs over 690,000 people.
How we support business growth
BDO in Ukraine supports construction and real estate businesses and helps them grow. We provide expert solutions in the following areas:
- Audit services — independent audit is fundamental to decision-making by shareholders and investors in the capital market. Our primary objective is to enhance confidence in the financial statements of our clients.
- Outsourcing — in our work, BDO in Ukraine integrates the best international experience with comprehensive expertise in the Ukrainian market and legislative framework.
- Consulting — the strength of BDO in Ukraine lies in the combination of exceptional knowledge and leadership in the national market with the global capabilities of the largest BDO network.
- Tax and legal practice — practical experience and understanding of industry specifics, together with BDO’s unique methodology, allow us to advise on key aspects of taxation.
- BDO Digital — digital transformation is a comprehensive rethinking of the business model and the way a company operates, accompanied by the introduction of digital technologies and innovative solutions. This approach involves more than just installing modern equipment or software; it necessitates fundamental changes in management, corporate culture, and external communications.
Opportunities for investors in a changing environment
Despite the challenging macroeconomic environment, Ukraine remains an attractive market for investment in construction and real estate. The restoration of damaged infrastructure, the need for modern residential and commercial facilities and the prospects for attracting international capital are creating new business opportunities.
The war in Ukraine has had a significant impact on the construction industry, resulting in substantial losses. According to estimates from the World Bank, the United Nations, the European Commission and the Ukrainian government, the country’s economy will require USD 524 billion to be rebuilt following three years of war. This figure is almost three times the expected size of Ukraine’s economy in 2024. The sectors most severely impacted are housing, transport, energy, commerce and education.
The restoration of destroyed infrastructure necessitates the implementation of cutting-edge technologies to facilitate the expeditious and effective reconstruction of housing and social infrastructure:
- 3D printing of buildings (3D printing enables the rapid construction of housing and infrastructure, while minimising the use of materials. ICON and COBOD are already printing houses globally. In Ukraine, it is APRIORIGROUP).
- Modular construction (prefabricated modules manufactured at the factory, which significantly speeds up their installation on site. This technology is characterised by high energy efficiency and scalability).
- Energy-efficient construction (Passive House) (this technology utilises heat pumps and solar panels, thereby reducing heating costs).
- Use of renewable and environmentally friendly materials (use of geopolymer concrete, which reduces CO₂ emissions, and recycled materials).
- “Smart” cities and digital planning (BIM (Building Information Modelling) is used for effective construction management and implementation of smart infrastructure for urban systems).
BDO in Ukraine has in-depth expertise in these areas and helps clients to adapt effectively to the new environment. We collaborate with Ukrainian and international partners to deliver reliable solutions for the sustainable development of the industry. Contact us for details!
