Page 45 - Ukraine OUTLOOK 2024

• 6.3 Construction & Real Estate
The total area of residential buildings for which construction permits have been issued (new construction) decreased by 39% in the nine months of 2023, according to the State Statistics Servicer, compared to the same period in 2022, to 3.17mn square metres. In particular, the total area of new apartment buildings constructed was 3.06mn square metres. (96% of the total volume).
In Kyiv, the total area of new housing construction decreased by 54.7% to 296,100 square metres. In the Kyiv region, the drop was 68.2%, to 468.3mn square metres; in Lviv, by 24.9%, and in Khmelnytsky, by 25.2%. Also, the Rivne (-80%), Volyn (-77%), Ternopil (-66.5%) and Odesa (-59.2%) regions also showed a significant reduction in volumes.
At the same time, the largest growth was recorded in the Chernivtsi region (+326.4%), the Ivano-Frankivsk region (+281%), the Dnipropetrovsk region (+131.2%), the Vinnytsia region (+40.4%) and the Zakarpattia region (+15.3%).
In the remaining areas of Ukraine, the amount of new construction was less than 100,000 square metres for the period.
• 6.4 Retail
The turnover in Ukraine’s retail trade in January-September 2023 in comparative prices increased by 11.6% compared to the same period in 2022. In September of this year, a rise of 19.4% compared to last September was recorded, less than the figure in August, when it was 23.8%.
The pick-up in economic activity has been mainly driven by a rapid recovery in household demand, since the decline in real income in the private sector has been offset with high and robust income of military personnel. The recovery was also helped by a dramatic improvement in internal logistics and better sentiment of businesses and consumers.
Private household demand will continue to be the engine of economic recovery. So far, real incomes have been supported by an upsurge in the
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