Rising Prices of Building Materials Require Proportional Adaptation of the 'eOselya' Program Limits – Opinion

Since the start of 2026, prices for building materials in Ukraine have experienced a significant increase, ranging from 20 to 25%. This surge has raised concerns regarding the effective functioning of the state program 'eOselya', which is designed to support housing accessibility. Serhiy Pylypenko, the CEO of the industrial and construction group 'Koval'ska', emphasized the need to update price limits to adapt to these changes.

In a recent comment to Interfax-Ukraine, Pylypenko highlighted that the construction market in Ukraine has shown a gradual recovery over the past two years, with annual growth rates between 12-15%. This trend indicates that businesses are adapting to new conditions, leading to a gradual balance between supply and demand. Currently, as in previous years, there is no shortage of building materials. In fact, the production potential sometimes exceeds the solvable demand, keeping the market generally balanced.

“In certain segments, there may be situational shortages due to disruptions in electricity supply, a lack of personnel, or raw materials. However, overall, the market fully meets the demand for building materials. Despite a harsh winter, our forecast for 2026 remains quite confident and optimistic: we expect growth of about 15% in natural indicators across almost all sectors of 'Koval'ska' business. At the same time, prices continue to be an important influencing factor on the market,” Pylypenko stated.

He also pointed out that the market is already feeling the significant price increases due to global processes, including the rising costs of oil and fuel, as well as internal economic challenges. The situation began with a review of cement prices, but since the beginning of the year, prices across the entire supply chain have risen by approximately 20-25%, and this is not the limit.

“Currently, we are witnessing a rapid increase in prices for construction products and services due to several factors: rising logistics costs, energy resources, and labor shortages significantly impact the direct cost of most products. Currency fluctuations of the national currency exacerbate this dynamic, as part of the cost is imported. Regardless, the influence of all these factors will be substantial. By the end of the year, the price increase for construction products could reach 30-35%, and some suppliers are already declaring even higher figures,” Pylypenko added.

The CEO of 'Koval'ska' stressed that this will have a significant impact on the purchasing power of the population and could affect the dynamics and volumes of construction in the medium term. The cost, and consequently the price per square meter, will rise in both the residential segment and in state-funded projects.

“In light of the aforementioned, the state program 'eOselya' will require a review of its limits. Currently, the program is based on a maximum cost of an average of 48,000 UAH per square meter (66,000 UAH in Kyiv) and has certain restrictions on the maximum amount. However, if building material prices continue to rise, the limits will need to be revised upwards by at least 20-25%. Otherwise, very few objects will qualify under the program's conditions,” Pylypenko concluded.

The industrial and construction group 'Koval'ska' has been operating in the Ukrainian construction market since 1956. The company unites over 20 enterprises in the field of raw material extraction, product manufacturing, and construction. Its products are represented by brands such as 'Concrete from Koval'ska', 'Avenue', and Siltek. 'Koval'ska' enterprises operate in Kyiv, Zhytomyr, Lviv, and Chernihiv regions. The gas concrete production plant in Kherson region has been non-operational since the beginning of the occupation.