With the beginning of the war, construction companies experienced a recession. After the invasion, many developers suspended their work, mostly in the east and south of Ukraine. Bukovyna is a region far from the front, but the war brought changes to the construction industry. The growth of the dollar and high inflation affected the cost of housing. The purchasing power of the population has decreased. The war made people more cautious about big purchases. They don’t know what will happen tomorrow, so they are afraid to take risks.

The destruction of enterprises was influenced by the lack of building materials and disruption of logistics, and the price of energy carriers rose. All this slows down the work. Developers are completing the projects they started, but there is no sharp increase in the number of new ones. The blackout also became a challenge: we had to adapt to the blackout schedules and buy generators. This slowed down the pace of construction. Many builders were military mobilized and there is not enough labor force.

Since October 2022, the “eOselia” state housing lending program has been operational, but it has not spread to Bukovyna.

After the war, the construction market may become more active, but in the long-term perspective it will depend on the pace of macroeconomic stabilization and state policy in this area.