Up to 20% of Ukraine’s construction market is made up of commercial real estate restoration projects – Rauta

Commercial real estate restoration projects account for up to 20% of Ukraine’s construction market, said the director of the engineering and construction company Rauta, Andrii Ozeichuk, in a comment to the “Interfax-Ukraine” agency.

“Despite the war risks, the owners of most destroyed commercial real estate properties are investing in their restoration in order to restart their business, which allows the companies to continue working effectively. In particular, about 80% of retail properties destroyed during the full-scale invasion and located far from the combat zone have already been rebuilt or are at the restoration stage,” he said.

According to Ozeichuk’s observations, in the segment of industrial and warehouse buildings this figure is lower, about 40%.

“For most such properties, the owners are looking for financing,” explained the director of Rauta.

According to him, the restoration projects Rauta was involved in include the Retroville shopping mall (Kyiv), a production workshop of the Chernihiv automobile plant and a Novus supermarket in Bucha (Kyiv Oblast).

Rauta’s experience in restoring commercial real estate shows that investors often make it an additional requirement, when restoring properties, to improve their energy efficiency and architectural appeal, which makes it possible to optimize costs during the operation of the buildings.

According to World Bank data, as of February 2024 Ukraine’s reconstruction needs were estimated at $486 billion, of which about 25% are commercial real estate properties.

The engineering and construction company Rauta is a leading provider of reliable construction solutions in Ukraine and the countries of the European Union.

According to Opendatabot, LLC “Rauta Group” was registered in Ukraine in 2014. Its statutory capital is 388 thousand hryvnias, and its revenue for 2022 was 102.396 million hryvnias.