Why are prices for new buildings rising in 2025?

Main reasons from developers

Real estate

.

Oct 13, 2025

Why are prices for new buildings rising in 2025?

Why are prices for new buildings rising in 2025?

Main reasons from developers

Main reasons from developers

Real estate

.

Oct 13, 2025

🏗 Housing prices continue to rise — the cost of construction has increased by 10–25% in 2025. Developers cite several reasons, all of which are systemic.

🔹 Materials. According to builders, the rise in construction materials prices has become the main driver of cost growth.

The highest increases have been seen in the prices of insulation, reinforced concrete products (up to +25%), radiators (+23.5%), and PVC windows (+20%). Even basic items — cement, bricks, concrete — have risen by 6–10%.

🔹 Logistics. The war has complicated supply chains: delivery of materials now takes 1.5–2 times longer, and additional costs for transportation and storage automatically impact the cost per square meter.

🔹 Labor shortage. The market lacks qualified workers, which has led to salary and construction labor costs rising by 15–25%.

🔹 Import instead of domestic production. According to the company DIM, the share of imported materials has increased from 14% to 30%. The devaluation of the hryvnia and complicated logistics make them even more expensive.

Despite this, developers, including City One Development, believe that the peak of price increases has already passed. The sharp rise occurred in 2024, and the current changes are more of a correction than a shock.

Nevertheless, even under conditions of stabilization, new housing in 2025 is becoming more expensive than ever before. This is not a temporary trend but a new economic reality of the Ukrainian market.

Source: Interfax-Ukraine

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© 2023-2025 PO "Institute for the Development of the Ukrainian Real Estate Market «Plektan»" EDRPOU Code 45191388. All rights reserved
© 2023-2025 PO "Institute for the Development of the Ukrainian Real Estate Market «Plektan»" EDRPOU Code 45191388. All rights reserved
© 2023-2025 PO "Institute for the Development of the Ukrainian Real Estate Market «Plektan»" EDRPOU Code 45191388. All rights reserved