Rising prices for building materials require proportional adjustment of eOselia program limits – opinion
Construction material prices have increased by 20-25% since the beginning of 2026, and there’s a trend for further increases. Price caps need to be updated to ensure the effective functioning of the state-run eOselia program, according to Serhiy Pylypenko, CEO of the Kovalska Housing and Utilities Group.
In a comment to Interfax-Ukraine, he noted that the construction market has shown a gradual recovery over the past two years, growing by 12-15% annually, indicating business adaptation and a gradual balancing of supply and demand. Currently, as in recent years, there is no shortage of building materials. Production capacity sometimes even exceeds effective demand, so the market is generally balanced.
"In certain segments, situational shortages are possible due to power outages, staff shortages, or raw material shortages. However, overall, the market fully meets demand for construction materials. Despite the difficult winter, our forecast for 2026 remains quite confident and optimistic: we expect growth of approximately 15% in physical terms across virtually all of Kovalska’s business areas. At the same time, prices remain a significant factor influencing the market," said Pylypenko.
According to him, the market is already experiencing significant growth due to global processes, particularly rising oil and fuel prices, as well as domestic economic challenges. It all began with a revision of cement prices, but since the beginning of the year, prices across the entire supply chain have risen by approximately 20-25%, and there’s more to come.
"We are currently seeing a rapid rise in prices for construction products and services due to a number of factors: rising logistics and energy costs, and labor shortages are significantly impacting the direct cost of most products. Exchange rate fluctuations in the national currency are exacerbating this dynamic, as a portion of the cost is imported. Regardless, the impact of all these factors will be significant. By the end of the year, price increases for construction products could reach 30-35%, and some suppliers are already reporting even higher figures," said Pylypenko.
He emphasized that this will have a significant impact on purchasing power and, in the medium term, could affect the dynamics and volume of construction: the cost and, accordingly, the price per square meter will increase both in the residential segment and in state-financed projects.
"Considering this, the state-run eOselia program will require a revision of its limits. Currently, the program targets a maximum price of an average of UAH 48,000 per square meter (UAH 66,000 in Kyiv) and has certain restrictions on the maximum amount. However, if construction materials prices continue to rise, the limits will have to be revised upward by at least 20-25%. Otherwise, a very limited number of properties will be eligible for the program," Pylypenko concluded.
The Kovalska Industrial and Construction Group has been operating in the Ukrainian construction market since 1956. It comprises over 20 companies engaged in raw material extraction, manufacturing, and construction. Its products are represented by the brands Concete from Kovalska, Avenue, and Siltek. Kovalska’s enterprises operate in Kyiv, Zhytomyr, Lviv, and Chernihiv regions. The aerated concrete plant in Kherson region has been closed since the beginning of the occupation.
