Housing costs are driven by logistics expenses and Ukrzaliznytsia tariffs
The cost of building materials in Ukraine has increased by 30–50% since the beginning of 2026. This has caused a record 20.5% rise in primary real estate prices. This was reported by RBC-Ukraine (Марія Волощук) citing the State Statistics Service of Ukraine, according to the portal PromPolitInform.
The main factors driving the increase in construction costs include rising fuel and energy prices, as well as increased labor costs. Furthermore, developers’ financial performance is impacted by the indexation of freight tariffs by Ukrzaliznytsia.
According to the State Statistics Service of Ukraine, industrial products required for residential construction have become 39.1% more expensive over the year. Construction work itself has seen a 23.1% price increase, marking the highest growth rate in the last five years.
Drivers of primary housing price increases
The most significant price spikes have been recorded in the segments of concrete, bricks, rebar, and cabling products. Rising logistics costs are negating the ability of manufacturers to maintain stable prices for raw materials such as crushed stone, sand, and cement.
Artem Hordiychuk, head of the client service department at Standard One, confirms the trend of rising costs. According to his forecasts, the cost of construction materials and engineering equipment could increase by another 10–20% from current levels in the final months of 2026.
Consequences of attacks on industrial facilities
The situation in the metallurgical sector remains complex due to security risks. ArcelorMittal Kryvyi Rih stated that missile attacks by the rf have led to forced partial production shutdowns.
High electricity prices for industrial consumers combined with security concerns create additional pressure on the production cost of Ukrainian rebar. These factors continue to influence project economics, complicating price forecasting in the real estate market.
Photo: RBC-Ukraine
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