Construction sector in Ukraine 2012 Development forecasts for 2012-2014

Construction sector in Ukraine 2012

Development forecasts for 2012-2014

The report updates readers on market activity, while providing a comprehensive view of Ukrainian construction overall and of its civil engineering, residential and non-residential segments.

The report presents profiles of major players active on the market, and describes current trends affecting the market and how they will influence development over the coming years.

 

Key topics

  • analysis of the construction market as a whole and interpretation of trends in salaries, volume of employment, prices, financial standing and number of construction companies,
  • in-depth analysis of factors with a bearing on the forecasts for the Ukrainian construction market: macroeconomic factors, foreign investment, investments by domestic companies, cement production, government programmes, etc.,
  • analysis of the civil engineering market and its individual segments, plus forecasts until 2014,
  • analysis of the non-residential construction market and its individual segments, plus forecasts until 2014,
  • analysis of the residential construction market and its individual segments, plus forecasts until 2014,
  • overview of the largest players on the Ukrainian construction market, along with their latest financial figures, current trends in market strategies and the newest contracts signed.

 

Questions that this report answers

  • What is the current and future value of the Ukrainian construction market and its individual segments?
  • What is the total area of apartments to be placed in use between 2011 and 2014?
  • Which regions are going to see the largest increase in the number of new construction projects in the coming years?
  • What are the road construction plans until 2015?
  • What is the financial standing of the biggest construction companies in Ukraine and what new contracts have the companies signed recently?
  • How have the prices of construction materials changed recently?
  • How has the number of construction companies operating on the Ukrainain market changed recently?
  • What key legal changes affecting the construction market were introduced over the last few months?
  • What are the most important indicators and what are the current trends in the sub-segments of non-residential construction?

 

Companies in this report

Altcom Road Construction, Azerkorpu-Mz Autobahn-Bau , Bouygues , China National Machinery & Equipment Import & Export Corporation, China Road and Bridge, Corporation, Consol, Donspetsmontazh, Egis BCEOM International, G.D. Granit AD Skopje, Gerlux Group, Gulsan Construction, Hight-Point Rendel, House-Building Combine No. 3, House-Building Combine No. 4, Hyundai Engineering, IL & FS Transportation Networks, Investbudservis, ITNL India, Kryvorizhaglobud, Kyivmetrobud, Louis Berger Group, Mostobud, Mott MacDonald, NDI, Onur, Osnova Group, Pozniakizhilstroy, Stalexport-Autostrady SA, Strabag, Stroitelnoye Upravlenie No. 813, The Israel National Roads Company, Todini, Vinci.

 

The report will be most useful when

  • starting operations on the Ukrainian construction market
  • breaking into a new segment of the construction market
  • effecting a merger or acquisition on the construction market
  • developing corporate strategy
  • analysing investment opportunities on the construction market in Ukraine
  • monitoring competitors on the construction market
  • estimating your share in the construction market
  • making forecasts about the demand for construction materials
  • making in-house analyses for the management or shareholders.

 

The publication is dedicated for mamangement and marketing departments of

  • manufacturers and distributors of construction materials
  • manufacturers and distributors of construction equipment
  • contractors operating in Ukraine
  • foreign construction companies that make or plan to make investments in Ukraine
  • companies whose business consists in design and management of construction projects
  • consulting, research and analysis firms
  • government institutions, embassies, universities and research institutes
  • chambers of commerce, trade and industry organisations, media houses, PR agencies
  • financial institutions (banks, brokerage houses, investment funds).

 

Extract from this report

  • Of the total value of construction output between January and October 2011, 79.4% is accounted for by work on new constructions, reconstruction and modernisation, while general overhaul activities account for 14.1% with maintenance accounting for 6.5%.
  • The seven leading administrative units – the city of Kyiv and the Donetsk, Dnipropetrovsk, Kharkiv, Poltava, Odesa, and Kyiv provinces – accounted for two-thirds of the total value of construction works carried out in Ukraine between January and October 2011.
  • The value of the Ukrainian building materials market increased by 7% in 2010 and is estimated to have grown by 10% in 2011.

 

Market commentary by expert

Despite the somewhat lacklustre bank lending to the construction industry, and slow-paced recovery in the demand for housing, the overall construction activity in Ukraine will continue to grow. The ramping up of preparations for Euro 2012 is serving as a major boost for the construction industry, particularly in the area of transport infrastructure development and hotel construction. In 2012 and beyond, strong growth is to be seen in areas such as the construction of car parks, development of agricultural produce logistics facilities, municipal and environmental infrastructure, as well as PPP projects.

Robert Obetkon, Senior Construction Analyst

 

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  1. Methodology p. 9

  2. Executive summary p. 11

  3. Macroeconomic overview p. 19

    • Gross domestic product p. 19
    • Gross value added in construction p. 20
    • Gross fixed capital formation p. 21
    • Foreign direct investment p. 21
    • Inflation p. 22
    • Economic outlook p. 23
  4. Construction overview p. 25

    • Construction output p. 25
    • Construction companies p. 27
    • Employment and wages p. 28
    • Construction prices p. 29
    • Building materials industry overview p. 30
    • Legal changes relevant to the construction market p. 31
    • Forecast p. 32
  5. Civil engineering p. 35

    • Overview p. 35
    • Roads p. 36
    • Railways p. 45
    • Airports p. 51
    • Environmental protection-related projects p. 55
    • Investments in heavy industry p. 57
    • Forecast p. 61
  6. Non-residential construction p. 65

    • Business centres p. 66
    • Shopping centres p. 67
    • Logistics centres p. 71
    • Hotels p. 74
    • Forecast p. 77
  7. Residential construction p. 79

    • Housing stock p. 79
    • Housing completion p. 80
    • Individual housing construction p. 83
    • Housing prices p. 85
    • Housing construction development programmes p. 87
    • Mortgage market p. 87
    • Forecast p. 88
  8. Company profiles p. 91

    • Altcom Road Construction p. 91
    • Donspetsmontazh p. 93
    • Osnova Group p. 94
    • Mostobud p. 95
    • House-Building Combine No. 3 p. 97
    • Stroitelnoye Upravlenie No. 813 p. 99
    • House-Building Combine No. 4 p. 100
    • Kryvorizhaglobud p. 101
    • Consol p. 102
    • Investbudservis p. 104
    • Pozniakizhilstroy p. 105
    • Kyivmetrobud p. 106
  9. About PMR p. 107

  10. Contact PMR p. 108

List of graphs

  1. Gross domestic product in Ukraine (real y-o-y change), 2005-2014      11
  2. Construction market breakdown in Ukraine, 2007-2014      13
  3. Construction output in Ukraine (UAH bn and real y-o-y change), 2007-2014      14
  4. Civil engineering construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      15
  5. Non-residential construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      17
  6. Total floor space of housing completed in Ukraine (million m2 and y-o-y change), 2005-2011      17
  7. Residential construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      18
  8. Gross domestic product in Ukraine (real y-o-y change), 2005-2014      20
  9. Share of GVA in construction in GDP in Ukraine, 2005-2011      20
  10. Gross fixed capital formation in Ukraine (real y-o-y change), 2005-2011      21
  11. Foreign direct investment in Ukraine ($ bn), 2005-2011      22
  12. Consumer price index in Ukraine (%, y-o-y, average for the period), 2000-2011      22
  13. Construction output in Ukraine (UAH bn and y-o-y change), 2005-2011      26
  14. Financial performance of the construction industry in Ukraine (UAH bn), 2008-2011      28
  15. Average monthly wages in Ukraine (UAH), 2005-2011      29
  16. Construction price indices in Ukraine (%, y-o-y), 2005-2011      30
  17. Construction market breakdown in Ukraine, 2007-2014      33
  18. Construction output in Ukraine (UAH bn and real y-o-y change), 2007-2014      34
  19. Share of civil engineering in total construction market in Ukraine (%), 2006-H1 2011      35
  20. Length of Ukrainian public roads and hard-surface roads (’000 km), 1990-2010      36
  21. International transport corridors on the territory of Ukraine, 2011      37
  22. Length of renovated and constructed roads and motorways put into use in Ukraine, 2008-2012      39
  23. Growth rate for construction new roads (km) in Ukraine, 2002-2010      40
  24. National Motorway Construction Programme in Ukraine, 2005-2015      45
  25. Total length (km) of railways in Ukraine and change (%, y-o-y), 1990-2010      46
  26. Number of carriages purchased by Ukrainian Railways, 2006-2010      46
  27. Ukrainian railways within the Trans-European Transport Network, 2011      48
  28. Transportation of cargo (’000 tonnes) and passengers (million) in Ukraine, 1980, 1985, 1990, 1995, 2000-2010      51
  29. Structure of capital investments for road infrastructure in Ukraine by types of sources (%), H1 2010      62
  30. Civil engineering construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      63
  31. Total office space stock in Kyiv (’000 m2), 2006-2011      66
  32. Gross leasable area of shopping centres in Kyiv (’000 m2), 2005-2011      68
  33. Non-residential construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      78
  34. Total number of housing units completed in Ukraine (’000 units and y-o-y change), 2005-2011      81
  35. Total floor space of housing completed in Ukraine (million m2 and y-o-y change), 2005-2011      81
  36. Average size of dwellings completed in Ukraine (m2), 2005-2011      82
  37. Prices for housing in Ukraine (UAH/m2), November 2011      86
  38. Residential construction output in Ukraine (UAH bn and y-o-y changes), 2007-2014      90

List of tables

  1. Forecasts for the main economic indicators in Ukraine for 2010-2014      23
  2. Construction output in Ukraine, by administrative region, 2006-2011      27
  3. Production of basic building materials in Ukraine, 2007-2011      31
  4. Prices for selected types of building materials in Ukraine (UAH), 2009-2011      31
  5. Planned renovation of roads in Ukraine within the framework of preparations for Euro 2012, 2008-2012      38
  6. Planned construction, reconstruction and renovation of Ukrainian roads, 2011      39
  7. Largest road construction and renovation projects planned in Ukraine, 2011      42-43
  8. Renovation works carried out on railway routes of the central axis of the Ukrainian part of the trans-European transport network, 2009      47
  9. State of investments in Ukrainian railway transport forming part of the country’s preparations for Euro 2012 (UAH m), as of August 2011      50
  10. Largest airport construction and renovation projects in Ukraine, 2010-2012      53
  11. State of strategic airports and required investment list, 2010-2020       54
  12. Value of major investments and current works in the field of environmental protection in Ukraine (UAH m), 2007-2010      55
  13. Value of ecological programmes included in Ukraine’s state budget (UAH m), 2009-2011      56
  14. Largest construction investments in the field of sewage treatment and waste management in Ukraine, 2011-2014      57
  15. Largest construction projects in heavy industry in Ukraine, 2011-2014      60
  16. Financing plan of energy sector included in the Energy strategy of Ukraine for years 2006-2030 (UAH bn)      61
  17. Major investments within the Energy strategy of Ukraine for years 2006-2030      61
  18. Planned completion of business centres in Kyiv, Q4 2011      66
  19. Largest office projects planned in Ukraine, 2011      67
  20. Key indicators of the Kyiv retail property market, Q3 2011      68
  21. Shopping centres planned for opening in Kyiv, Q4 2011       69
  22. Largest shopping centre projects planned in Ukraine, 2011      70
  23. Key indicators for the Kyiv warehouse property market, Q3 2011      72
  24. Logistics centres planned for opening in Kyiv area, Q4 2011      72
  25. Planned opening of hotels in Kyiv, Q4 2011-Q2 2012      75
  26. Housing stock in Ukraine, 2008-2010      79
  27. Construction of housing space in Ukraine by administrative region, 2009-2011      83
  28. Housing construction by individual builders in Ukraine, 2000-2010      84
  29. Individual residential construction in Ukraine, by administrative region, 2009-2010      84
  30. Completion of single-dwelling houses in Ukraine (‘000 m2 of floor space), 2010-2011      85
  31. Largest residential projects planned in Ukraine, 2011      88
  32. Key financial data for Altcom, 2006-2010      91
  33. Key financial data for Donspetsmontazh, 2006-2010      93
  34. Key financial data for Osnova Group, 2005-2010      94
  35. Key financial data for Mostobud, 2005-2010      95
  36. Key financial data for House-Building Combine No. 3, 2005-2010      97
  37. Key financial data for Stroitelnoye Upravlenie No. 813, 2005-2010      99
  38. Key financial data for House-Building Combine No. 4, 2005-2010      100
  39. Key financial data for Kryvorizhaglobud, 2005-2009      101
  40. Key financial data for Consol, 2006-2009      102
  41. Key financial data for Investbudservis, 2006-2010      104
  42. Key financial data for Pozniakizhilstroy, 2005-Q1 2011      105
  43. Key financial data for Kyivmetrobud, 2005-2010      106