The analysis of the construction materials market showed that the consumer price index in Ukraine during the survey period was maintained within the normative level announced by the NBU (5%) with seasonal adjustments.
A similar situation to the CPI is demonstrated in industrial producer prices as a whole and in the category "Production of rubber, plastics and other non-metallic mineral products".
In the construction materials market, the volume of construction work in 2020 decreased by 4.65% in hryvnia and by 1.35% in dollar equivalent. There are two main reasons. The first is the consequences of the pandemic. The second is the bankruptcy of Ukrbud, which was announced in the autumn of 2019. In 2020, the construction of a number of small developers' facilities was frozen, and in August the insolvency of Arcade Bank, which financed the construction of a number of large housing estates in Kiev, was declared insolvent. Therefore, a decline to 7-8% is expected by the end of the year.
Due to quarantine, the number of buildings put into operation has decreased by 32% in the residential segment and 19% in non-residential real estate.
When researching the construction materials market, one of the key problems in the construction market is the low development of mortgage lending due to its low availability. In 2019, the average mortgage rate was 18-20 per cent, the highest in Europe compared to 4-6 per cent in Eastern Europe. In part, a step towards affordable mortgages was taken with a three-fold reduction in the discount rate in a year and a half. However, due to the sharp reduction of the rate and the lack of accompanying mechanisms in the form of legislation, a noticeable growth in the mortgage market will be seen from 2022.
Pegging the price of new housing to foreign currency contributes to strengthening the impact of the exchange rate on the market. Having fallen to less than UAH 25 at the end of 2019, partly due to the pandemic and partly due to seasonal factors, the value of foreign currency increased by more than 10% during the year.
A similar situation to the CPI is demonstrated in industrial producer prices as a whole and in the category "Production of rubber, plastics and other non-metallic mineral products".
In the construction materials market, the volume of construction work in 2020 decreased by 4.65% in hryvnia and by 1.35% in dollar equivalent. There are two main reasons. The first is the consequences of the pandemic. The second is the bankruptcy of Ukrbud, which was announced in the autumn of 2019. In 2020, the construction of a number of small developers' facilities was frozen, and in August the insolvency of Arcade Bank, which financed the construction of a number of large housing estates in Kiev, was declared insolvent. Therefore, a decline to 7-8% is expected by the end of the year.
Due to quarantine, the number of buildings put into operation has decreased by 32% in the residential segment and 19% in non-residential real estate.
When researching the construction materials market, one of the key problems in the construction market is the low development of mortgage lending due to its low availability. In 2019, the average mortgage rate was 18-20 per cent, the highest in Europe compared to 4-6 per cent in Eastern Europe. In part, a step towards affordable mortgages was taken with a three-fold reduction in the discount rate in a year and a half. However, due to the sharp reduction of the rate and the lack of accompanying mechanisms in the form of legislation, a noticeable growth in the mortgage market will be seen from 2022.
Pegging the price of new housing to foreign currency contributes to strengthening the impact of the exchange rate on the market. Having fallen to less than UAH 25 at the end of 2019, partly due to the pandemic and partly due to seasonal factors, the value of foreign currency increased by more than 10% during the year.
Table of Contents
1. General characteristics of the Ukrainian economy (key figures)
2. Market indicators for wall materials
3. Facade materials market indicators
4. Roofing materials market indicators
LIST OF TABLES:
LIST OF CHARTS AND GRAPHS:
