Staffing shortages, high construction costs, and the slow implementation of reforms and permitting procedures are the main challenges facing developers and architects in Ukraine during the war, construction industry representatives reported during the roundtable discussion dubbed "Building the future: development in wartime."
"There is a significant shortage of construction workers. We all felt this problem this spring. As an owner of the company, I am looking for people to complete projects," said A Development founder and CEO Oleksiy Baranov at the roundtable discussion at Interfax-Ukraine.
Beyond construction-specific professions, the market is also experiencing a shortage of architects, said Yulia Poliukhovych, chief architect of the A Development project.
"During the war, there are many other challenges. For example, there's a significant personnel shortage—there are very few architects now. This is a very serious challenge, because if previously three or four architects worked on a project, now it might be just one," she explained.
At the same time, architects must quickly adjust their designs to account for changes in building codes and standards, particularly those related to safety, the expert noted.
As Vitaly Borul, CEO of CREDO Development, noted, the construction of underground shelters with emergency exits is a significant expense for developers, and therefore the state should cover the cost of their construction.
"It looks cool, it's safe, but it's very expensive. I believe the state should compensate for the underground shelter. The state is responsible for people's safety, so somehow we must reach an agreement with the state, and it should compensate," the expert opined.
Developers have also experienced a significant increase in construction costs. Furthermore, the market reacts to every enemy attack on the city – after such attacks, housing sales fall. Construction insurance is also very expensive, noted Baranov.
"Before the war, the calculation was simple: the cost of materials (concrete or bricklaying) was equal to the cost of labor. Today, the cost of labor exceeds the cost of materials by two to three times," said the founder of A Development.
According to Baranov, significant obstacles are also created by the unfinished process of adopting bylaws by the government and ministries, particularly in the area of cultural heritage protection. Meanwhile, local authorities in Kyiv have not considered the issue of land allocation for a year and a half.
"For example, amendments were made to the law on cultural heritage, but the Ministry of Culture still hasn't approved the regulations. In May 2022, amendments came into force that make it impossible to do anything in the central historical area without zones and regimes. And the regulations were only approved in May of this year—that's four years later. Meanwhile, for example, there's still no regulation regarding monument areas," he noted.
Baranov emphasized that construction in Kyiv's historic center must be meaningful and transparent, but at the same time, overseen by the city.
"Kyiv should be a role model. Construction is very expensive, and you can't erase a construction project with an eraser. We need to adopt an approach that is transparent and quick, while still building something that will be relevant for years to come," the expert said.
