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This is probably related to expectations regarding expanding the circle of land buyers because, from 2024, legal entities will also be able to buy land. The average purchase-sale agreement has an area of 2.20 hectares, and the average price is ₴39,000 - ₴45,000 ($1,065-$1,230). The cheapest land was in the Kherson region at ₴23,000 per hectare. The most expensive land plots were sold in the Lviv region, at ₴132,000 per hectare. From the launch of the market (July 1, 2020) through the end of 2022, almost 143,000 land deals with a total area of 322,194 hectares have been concluded. Of these, nearly 42,000 agreements were made during the war.
International institutions are involved in the reconstruction of Ukraine's housing sector, and the country has the capacity to produce 80% of the necessary building materials. According to Olena Shulyak, head of the Parliamentary Committee on Urban Planning, the World Bank is considering working with a compensation mechanism for destroyed housing. The UNITED24 platform has collected funds to reconstruct destroyed buildings in the Kyiv region. The Zakarpattia authorities have developed a project where housing is financed from three sources: a third is provided by the military administration, another third by the community budget, and the rest by businesses operating in the community. As well, as Shulyak noted, it is important to produce construction materials for reconstruction in Ukraine. As a result, $16B of added value will remain in the economy, and $5.6B of these funds will go to salaries. Therefore, it will be possible to keep 100,000 jobs and direct $1.5B of income to the Pension Fund. Ukraine has 80% of the necessary production capacity for building materials, but some must be imported.
Ukraine presents investment projects for the restoration of Kharkiv. The Restart Kharkiv forum presented several investment projects to begin rebuilding the city. A scientific quarter will be created on the territory of the former Barabashov market. The Levada suburban station will combine a transport hub, shopping and entertainment, and cultural center. The total area of the complex is 51,600 square meters, and the estimated investment is $88M. The new Oleksiivka City microdistrict on 22 hectares is designed according to the "city within a city" concept and will consist of 16 residential blocks. The total area of the objects is 201,000 square meters, and the estimated investment is $237.4M. The project will develop a municipal e-taxi system with infrastructure and a charging station network. It is proposed to purchase 500 electric cars and equip 54 charging stations. The estimated investments total $21.63M.
Construction has strong investment potential, accounting for 2.3% of Ukraine's GDP. Ukraine's share of construction in its 2018 GDP was 2.3%, half of the world’s average, said the director of the Scientific and Technical Center of the Academy of Construction of Ukraine, Ivan Pereghinets. At the same time, the average share globally is more than 5%. And the largest share among European countries belongs to Slovakia with 7.1%. According to analysts, construction in Ukraine has excellent investment potential even without considering the war factor. s Pereghinets noted there is currently no accurate assessment of available real estate and its total value in Ukraine. This poses a particular problem for assessing the investment attractiveness in the sector. According to the British real estate and consulting company Savills, the total value of all real estate in the world in 2018 was $280T. "The Ukrainian real estate market is still a blank spot on the map of investment funds specializing in real estate, so we need it to know and consider in the
76 UKRAINE Country Report October 2023 www.intellinews.com