Boston, MA -- (SBWIRE) -- 12/24/2012 -- The Ukrainian construction industry value increased from UAH98.2 billion (US$12.2 billion) in 2010 to UAH119.6 billion (US$14.8 billion) in 2011, recording a compound annual growth rate (CAGR) of 21.8%. This was due to improved economic conditions, an increase in demand for Ukrainian exports from Russia and the stability of the Ukrainian currency. Following a weak performance in 2009, all construction markets grew in value in 2010. Consequently, the Ukrainian construction industry registered a CAGR of 6.13% over the review period, due to an annual decline of 33.9% in 2009.

Key Highlights

- The Ukrainian construction industry recorded significant growth in 2011 due to UAH107 billion worth of infrastructure expenditure to support preparations for UEFA Euro 2012. Of the total funds allocated, 73.8% was spent on infrastructure development, 12.2% was spent on construction and modernization and 9.2% was spent on hotels.
- A decline in export demand led to a crisis in 2009, due to which the economy declined by 14.8%. Although Ukraine registered CAGRs of 4.1% and 5.2% in 2010 and 2011 respectively, it is still in a period of recovery. To decelerate the pressure on reserves - which is undermining the financial security of the country - the central bank has tightened its monetary policy. This has led to a decline in growth, which is expected to be at around 3% for 2012.
- The business climate is affected by corruption and excessive government regulations. Excessive bureaucracy and delays in obtaining project documentation have challenged many significant investment agreements.
- Government officials have announced that investment in infrastructure development is expected to continue even after UEFA Euro 2012. New healthcare reforms are likely to lead to more efficient funding practices and low-interest loans for homebuyers will boost residential construction investment.
- Over the forecast period, the Ukrainian construction industry is expected to grow at a CAGR of 9.46%.?

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Scope

This report provides a comprehensive analysis of the construction industry in Ukraine:

- Historical (2007-2011) and forecast (2012-2016) valuations of the construction market in Ukraine using the construction output and value-add methods
- Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
- Analysis of key construction industry issues, including regulation, cost management, funding and pricing
- Assessment of the competitive environment using Porter's Five Forces model
- Detailed profiles of the leading construction companies in Ukraine

Companies Mentioned in this Report: TMM Real Estate Development Plc, PJSC Mostobud, Ternopilbud, Kyivmiskbud, Holding Company, Joint-Stock Company

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