"You can't stop building": we put someone in their place

Despite the risks and rocket attacks, construction is coming to life in the western regions, in Kyiv and the Kyiv region, and even on the Left Bank — in the Dnipro. What it is? A paradoxical reaction to mass destruction? Manifestations of a fighting nature? Are logic and mathematics the new reality? We discuss with industry leaders and our partners - DAYTONA GROUP, Greenville, DIM, Vlasne Misto - the reasons for this welcome phenomenon, the motivation of developers and investors, as well as possible forecasts. And as a bonus, let's talk about the secret construction plan "Mulberry Harbor", which ensured the victory of the Allies in the Second World War.

The first days: despair and losses

The first days after the start of the large-scale invasion shocked the Ukrainian economy. It seemed that the construction industry, as the most vulnerable, against the background of intense shelling, high energy prices and a drop in market demand, would not just stagnate, but die altogether.

The flagship project of President Volodymyr Zelenskyi's "Great Construction", which involved the active modernization of the road network, schools and hospitals in 2020-2021, was immediately frozen. At that time, money was poured into the construction industry in parts from the 4,1 billion euros reserved for the program (426 million euros were allocated by the European Bank for Reconstruction and Development). Then the share of construction in the domestic GDP of Ukraine increased to 3,3%. For comparison, in prosperous and stable Europe, it balances at the level of 5–7% of GDP. But in February 2022, it became obvious that the planned resources would have to be directed to other needs.

Not only the Ukrainian, but also the world construction market has faltered, experiencing an acute shortage of steel and construction materials in general due to the disruption of logistics chains. But in Ukraine, the deficit was felt almost as critical. The production of clinker bricks has stopped due to the impossibility of delivering the raw material - refractory clay from the north of the Donetsk region. A factory for the production of construction mixtures near Bakhmut was destroyed. Metallurgical enterprises in Mariupol were destroyed and captured. Ukraine's largest minewat production plant in Zhytomyr was hit by rocket fire. All this, plus inflation, led to the fact that in 2022, prices for building materials and work increased more than twice in hryvnias.

And yet still in the spring, after the liberation of Kyiv region, the mood changed and became more optimistic. Despite the rapid rise in prices and daily worries, construction sites came to life one after another. Initially, it was expected that the main point of effort would be the restoration of destroyed housing and the construction of a new one. But despite numerous discussions, presentations, negotiations and memoranda, the Fast Recovery Plan program never started. The construction of modular temporary housing for displaced people can hardly be considered a large-scale activity affecting the industry. We wrote in more detail about ambitious plans and reality in the series of articles "Housing for IDPs".

Oddly enough, the construction of business and premium class residential buildings is the most active at the moment, not infrastructure or low-cost housing. And what about the risks?

A developer's nightmare

On the evening of July 28, 2023, the Russian Iskander missile hit a 12-story building in the center of Dnipro at the intersection of Korolenko and Kostomarivska streets. The three upper floors of the corner sections were destroyed by a direct hit, the apartments on the other three floors were damaged.

GENEVE residential complex is a project of the DAYTONA GROUP development company. The second stage of the complex — the same building that was targeted by the Russian army — was completed after the start of the large-scale invasion and put into operation in April 2022. Many residents managed to move into the building, but finishing works were still ongoing in most of the apartments.

Considering the destructive power of "Iskander", the new house demonstrated amazing strength. The backbone of the building — a load-bearing structure built using monolithic-frame technology from reinforced concrete — stood. Only the direct impact sites were destroyed. The impact did not cause a large-scale fire: the hinged facade made of ceramic granite with non-combustible basalt insulation was, as it should be, fireproof. DAYTONA GROUP is confident that the structure of the building can be completely restored in a few months.

The development company, using its own funds, volunteered to conduct a preliminary survey of the building with the involvement of specialized specialists regarding emergency emergency measures, a comprehensive survey to detect hidden damage, develop a working project, help dismantle the rubble, and additionally allocated a million hryvnias of free assistance for restoration work.

Despite the optimism regarding the restoration of the GENEVE residential complex, everyone understands that once again (after the tragedies of Mariupol, Bakhmut, Vugledar, destruction in the capital and dozens of Ukrainian cities and villages) they have witnessed the realization of the scenario that every Ukrainian developer sees in his nightmares: when the object, on the creation of which hundreds of people worked for several years, and hundreds of people invested their money, becomes a victim of indiscriminate barbaric shelling. And yet, DAYTONA GROUP has no intention of stopping — the company continues to actively build residential complexes in Dnipro (MAYAK residential complex, MARSHALL residential complex) and has started implementing a project in Uzhhorod (MAVERICK residential complex).

One of the owners told PRAGMATIKA.MEDIA about the precedent with the rocket, recovery plans and the general situation on the real estate market DAYTONA GROUP Andriy Orlov.

PRAGMATIKA.MEDIA: So, you declared your readiness to carry out part of the reconstruction work of the residential building that was hit by the rocket at your own expense. Why exactly did the developer undertake the restoration, since the building has already been put into operation and transferred to condominiums?

Andriy Orlov: We started the restoration work before we prepared all the documents because we understood our responsibility. We assumed the costs of conducting a comprehensive survey of the monolithic frame, engineering networks and possible hidden damage. The difficulty lies in the fact that we have to develop documentation and restoration technology on our own, since there are no such norms, such an order, which would regulate the restoration of multi-apartment buildings that were hit by a Russian missile. The city also assumes a significant part of the expenses, helps us go through bureaucratic procedures.

Co-owners of condominiums also mobilized, made decisions and are collecting funds to restore the building's design condition and life in it. We understood that it would take a long time to prepare the documents, so we started restoration work in the first days after the arrival. They helped to dismantle the rubble, which required special construction equipment - a crane and lifts. It is in our interests to at least insulate the upper floors before winter, because if the building structures are left open, the weather can cause damage as serious as a rocket. Moreover, people continue to live in the building - because the apartments from the 7th floor and below did not suffer significant damage. For us, the GENEVE complex is a landmark and important project that our team implemented with enthusiasm and love. Therefore, it is quite natural to want to put everything in order as soon as possible.

P.M.: How complicated and expensive does the process have to be? Is the destruction large-scale?

A. O.: It turned out that this "Iskander" is not as destructive as it seemed, at least with regard to the reinforced concrete structure. I can already say that we have no doubt that the structure has preserved its integrity.

This case brought us all a very important experience: we were convinced of the super-stability and reliability of reinforced concrete structures. This case emphasizes the priority of using reinforced concrete in construction, especially in areas with a high risk of natural and man-made disasters. Compared to brick constructions, reinforced concrete ones turned out to be more stable and able to maintain structural integrity.

P.M.: When after February 2022 did you resume construction work on the facilities? At what pace are you building now?

A. O.: At all our facilities, people went to work already 2 weeks after the start of the large-scale invasion. I think we were the first construction company in Ukraine to resume work.

Since then, we have commissioned 2 facilities. It was difficult because the registers did not work. All executive structures and communal services also had no previous experience of working under the conditions of a full-scale war. However, we passed all this and passed the MOZART residential complex and just the second round of the GENEVE residential complex.

On our other constructions, we are moving close to the schedule approved in accordance with the terms of the contracts. Yes, the situation is unstable. We are facing changes in the logistics of supplying materials. Some suppliers go bankrupt, leave the market, and new ones appear. But the most unpredictable factor is mobilization. The number of workers at our contractors varies, and they are not always able to complete all jobs on time. Finding new builders and engineers takes time, which is indicated on the graphs. But we always strive to meet the deadlines.

Perhaps our activity was provoked by some kind of shock, which motivated us and forced the team to work more organized and coordinated.

P.M.: In international insurance practice, war is considered a force majeure that temporarily releases the parties from fulfilling their obligations. How do you protect your business from inflation or destruction due to shelling? Why continue to invest money and effort in something that can be destroyed in a matter of seconds? What is your main motivation?

A. O.: War is a powerful blow to business. And I am very proud that our company was able to survive. First, we have a large team of over three hundred people. DAYTONA is a full-cycle company that includes a financial structure, a sales department, a general contractor and an architectural office. Preservation of the collective was critically important.

Secondly, we have about 1700 investor clients who have entrusted us with their money. The stoppage of construction is the preservation of the object, the termination of the supply of materials and the violation of obligations to contractors and partners. There are legal obligations that cannot be violated in this way. And, by the way, war is not a reason to refuse to fulfill obligations.

If we freeze the construction, it will be extremely difficult to unfreeze it, I would even say it is unlikely. No one knows how long the war will last. Imagine the situation: if we froze our construction in the spring of 2022, we would leave people without work for almost two years. Who will pay them? How will they live? Everyone has families. Many of our employees are fighting, their families need support.

There is also a purely technical aspect. Each object has a certain degree of readiness and certain seasonal types of work that cannot be simply abandoned physically. They must be finished so that the materials and everything that is there remain warm, so that water does not get on them.

All these circumstances neither technically nor morally allowed us to take over and preserve the construction. I really don't understand how developers who stopped their activity or froze construction will restore them.

P.M.: Do your clients continue to fulfill their obligations? Do they pay in installments?

A. O.: Of course, we have been and remain in close communication with our customers all this time. In the first months, understanding the situation, we allowed people not to pay. The vast majority of buyers bought real estate for payment. Some continued to pay contributions, but about 80% of people temporarily paid nothing. We then asked them to start paying off the debt if they wanted us to continue with the construction process.

We understood that everyone has their own serious problems. Someone went to fight, someone left, took their children away. So many difficult and broken destinies... That's why we didn't pressure anyone morally, we tried to come to an understanding with our clients for the correct repayment of the debt. We even refunded some people their contributions because they couldn't keep paying. They came and honestly said: "Guys, everything is ruined for me, everything is difficult, I can't pay anymore." There were unpleasant situations when they simply tried to deceive us, but these are exceptions. Now 90% of people pay and we are grateful to them for that. They saw progress on our buildings, we communicated, told, showed, and all this generally convinced our investor clients and attracted new buyers.

P.M.: When, according to your forecasts, will the prices for square meters in new buildings return to pre-war levels? What is happening to the prices per square meter in your area?

A. O.: Our prices per square meter have always been pegged to the dollar. That's how it remained. I will say more that the square meters at some of our facilities have even become more expensive in dollar terms. We did not lower prices because we did not lower our quality bar - this is our policy. We are obliged to deliver the project exactly in this form and quality, using exactly the materials that were promised. Therefore, taking into account inflation and the increase in the price of all logistics, we cannot lower the price, which today is quite adequate for the situation. We are not ready to give a gift to speculators. And we don't want to raise it, despite the fact that our earnings cannot be compared with the 20-21 years.

We have not so many unsold apartments left. At the objects under construction in Dnipro, out of 315 apartments in the MAYAK residential complex, only 35 apartments remain unsold, in MARSHALL out of 460 - only 32. Of course, it would be wrong to say that sales are going at pre-war pace. There are almost the same number of calls, but the number of real transactions has decreased significantly, of course. For example, we sold the MOZART residential complex in 2021 in 30 hours and were amazed ourselves. Nowadays, the pace is not the same. Over the past 2-3 months, the demand for apartments has further decreased. Usually September sees an increase in demand, but now we are in a different reality. I think it is connected with the uncertainty due to the coming winter.

P.M.: And what do you expect from the coming winter? Forecasts are different, and most are quite pessimistic.

A. O.: We are also preparing for winter, we understand that there may be no electricity. Last year, we bought generators in order not to interrupt construction in blackout conditions, to ensure constant operation of cranes and heating of concrete. We are gradually adapting to new conditions.

P.M.: When completing facilities started before a large-scale invasion, do you make changes to the project taking into account the fact that people are starting to demand autonomous communications and the presence of bomb shelters? What about new projects?

A. O.: In new projects, we take into account the need for autonomous communications and storage. But also solutions in previously designed objects are sometimes ahead of time, for example, in our MAYAK building, an underground level was planned, which we equipped with all the necessary equipment in order to use it in an extreme situation as a shelter for 1200 people (In 2021, PRAGMATIKA.MEDIA wrote about this project, which should return the status of the Ukrainian "high-rise capital" to the Dnipro. — Note ed.).

In new houses, of course, we design everything according to new standards. At our new facility in Uzhhorod, for which the site is already being prepared, bomb shelters are included in the project.

P.M.: There was a version that by using stockpiles of building materials at pre-war prices in 2022 to complete the construction of business and premium class facilities, Ukrainian developers essentially deprived the state of the opportunity to use these materials to repair and build affordable housing for victims of war. Some politicians and representatives of local authorities justify the fact that the reconstruction works are progressing very slowly. Can you comment?

A. O.: To be honest, I have never heard of such a problem from our contractors. I can't say that we ever chose materials that were intended for government needs. Perhaps this is due to the fact that we use expensive exclusive materials for premium projects. Information is needed on the nomenclature of materials and their characteristics, what types of reinforcement, concrete or brick should be used in the restoration works at the budget expense. By the way, in general, the reduction in the volume of construction in Ukraine practically eliminated the problem of commodity deficit. I assume that in the first months there could be problems with the fittings. But we always actively purchased materials in advance, and at the time of the invasion we had a stock in warehouses and factories. Well, exclusive finishing materials, tiles, facades were also imported from abroad in pre-war times, they were practically non-existent in the domestic market of Ukraine.

P.M.: Let's look at the situation a little more broadly. How do you see the solution to the problem of the shortage of affordable housing in Ukraine and in particular in your city? Today, the issue of housing Ukrainians who lost their homes due to Russian aggression has become relevant not only from a social, but also from an economic and political point of view. How can a large development business help in this matter?

A. O.: To correctly solve this task, you need to have accurate data. This is the math I teach my kids. If the data is not collected correctly, then the result will be wrong, even if the task is solved by the most intelligent people. It is important to know how many people have lost their homes and how many of them really need a new one. It is important to determine the number of economy-class residential properties on the market that are empty and not for sale for any reason. Collecting and analyzing this data is the most difficult part. Then it would be possible to work with the owners of this real estate, to discuss options for buying apartments for municipal funds. Perhaps, in the end, it will turn out that Ukraine does not need to build so much new budget housing.

P.M.: What actions of the government, in your opinion, could stimulate the real estate market of Ukraine in the conditions in which we are now?

A. O.: The formula is essentially simple. It is necessary to reduce the cost of construction. This can be done by first of all eliminating corruption points. Digitization of construction processes can simplify obtaining permit documentation and reduce the possibility of corruption. It is important to encourage manufacturers of construction materials, as their domestic production always allows to reduce the cost price. Tax policy plays an important role, the work is just unfinished, and so far it is not noticeable that any of the government officials are trying to reduce the tax burden on Ukrainian entrepreneurs and industrialists. The investment climate is very important to us, and for this, at a minimum, it is necessary to enshrine the protection of private property in legislation, so that investors feel protected and confident that their investments are safe. Inalienable and inviolable private property is the basis of all successful economies.

Expert opinion. We build in Kyiv and the region

Kyiv is in a conditionally privileged position, since it, as the capital, is much more reliably protected by air defense against missile attacks. And yet in Kyiv, the drop in real estate prices in 2022 was the most drastic: in the first half of the year, prices fell to the level of a provincial city. Business and premium class have lost up to 25% of their value. The growth was marked only at the end of the year, but for the whole of 2023, no significant upswings occurred.

And in the Kyiv region, which was catastrophically affected in the first weeks of the influx, the dynamics of housing prices is now very different depending on geography: in the north, apartments are becoming cheaper, in the south they are becoming more expensive, but very slowly.

So what motivates developers whose sites are located in Kyiv and the suburbs? We are answered by Natalia Dubyk, project manager of the Greenville company, Oleksandr Nasikovsky, co-founder and managing partner of the DIM group of companies, and Yaroslav Korniyachenko, CEO of the Vlasne Misto company.

PRAGMATIKA.MEDIA: When after February 2022 did you resume construction work on the facilities? At what pace are you building now?

Natalia Dubyk: Construction was gradually resumed at the end of May 2022. Currently, the pace at our Kyiv projects — Greenville Park and Greenville on Pechersk — has returned to the pre-war level. This was preceded by painstaking work. We resumed work with subcontractors and suppliers of building materials, optimized production processes during the period of regular power outages and despite rocket attacks, divided some processes into components, increased stocks of building materials, organized operational coordination between suppliers and construction.

In the first half of 2023, a first-line parking lot was put into operation in the Greenville Park residential complex. In the 1,5 years since the beginning of the invasion, a total of 20 square meters were built on Greenville Park. m. Every month on the official websites of both of our housing complexes, we publish reports on the work done on the buildings, where we provide numbers and statistics. And at the end of September, we received a certificate from the State Inspection of Architecture and Urban Planning of Ukraine about the commissioning of sections 4 and 5 in the Greenville residential complex in Pechersk.

Oleksandr Nasikovskyi: We were among the first to resume work at our sites in June 2022, actually two months after the Russians retreated from Kyiv and Chernihiv regions. The team was preparing for this moment all the time after the de-occupation: we conducted audits, calculated associated and new risks, contacted contractors, that is, conducted all possible preparatory work to make the launch process as seamless as possible. Since then, we have not stopped work on our sites for a moment, so even in the first year of a full-scale war, we let almost 19 thousand square meters. m. People directly saw how work is being done on the sites. And if at the beginning of the full-scale invasion, only 10% paid correctly under the installment contracts, now this figure reaches 70%. Exactly half of those who bought real estate from us are not waiting for the end of the war and are already fulfilling their obligations. Because he sees that every hryvnia from their pocket really goes to the construction of their own house, and not just to a new pit. We are working to make this figure reach at least 90% by the end of the year.

Our pace of construction remains unchanged, which is best demonstrated by the number of square meters we plan to deliver this year: more than 60 square meters. m is being prepared for commissioning by the new year.

Yaroslav Korniachenko: During the difficult battles in the Kyiv region and throughout the territory of Ukraine, our team, like billiard balls after a hit, was deployed throughout the territory of our country and beyond, from the architect to the master of the construction site. So that depression did not overtake the team, and panic did not affect the consciousness and cohesion of a powerful team, in order to be ready for the rapid start of the recovery of the region's economy, already in mid-March we continued project work and salary payments, even replenished the team of project architects with excellent specialists who lost their workplaces. Many construction workers came to the defense of our state.

Gradually, with the liberation of the territories of the Kyiv region, my partners and I began to discuss the resumption of construction on the site: the first builders returned in August 2022 and gradually began to increase the pace of work and the search for construction materials that were available. We are increasing the pace of project implementation and making up for lost time, we want to catch up with the construction result by the end of 2023 and exceed the implementation plan of the first stage already in 2024.

PM: How do you protect your business from inflation or destruction from shelling? Why continue to invest money and energy in something that can be destroyed in a matter of seconds? What is the main motivation?

Natalia Dubyk: The main motivation of our team is the reputation of the Greenville group of companies and responsibility. We have obligations to our investors, so we must fulfill them and complete the construction. Another factor is the support of the economy in an extreme period for the country. As long as the economy works, the state will be able to function and fight. And the economy consists, in particular, of jobs, wages, taxes, etc. — it is a complex, interconnected multifactorial system. Thanks to the Armed Forces and Air Defense Forces, even in such a difficult time, we can work calmly and implement our plans.

Today, the best protection against inflation is investing in projects whose returns exceed inflationary risks. Therefore, the main thing is the purchasing power of the population. The crisis caused by the war hit purchasing power hard. The government's mortgage support program helps correct negative trends, and the circle of people who can take advantage of preferential lending is gradually expanding. Our specialists always analyze whether the issue of purchasing power will not reach its critical limit, beyond which the projects will become too risky. Every year, we formulate a budget for a period of 3 to 5 years, which takes into account various scenarios of the development of events, including crisis ones.

Oleksandr Nasikovskyi: The main motivation is people. Buyers, investors, partners, contractors, the team, as well as everyone involved in housing construction in one way or another. Let me remind you that there are more than 40 related industries. Accordingly, these are jobs, taxes paid on time, as well as a construction multiplier at the level of at least 6,5 hryvnias, capable of becoming the engine of Ukraine's recovery. That is, every hryvnia invested today in housing construction affects the economy seven times more.

Last year was not easy for the construction industry. Developers across the country put into operation only 7,11 million square meters. m of housing against 11,44 million sq. m. m in 2021. In percentage terms, the decline is 38%.

At the same time, according to the latest, but, unfortunately, not final calculations, more than 30 million square meters. m of housing in Ukraine have suffered one or another destruction, of which more than 65% cannot be restored at all.

This means that we will need at least 6 years under the most favorable conditions to catch up and restore lost housing. And if you add to the number of destroyed things that have long been in need of renovation due to the period of operation that has been exceeded by tens of years, then the period of restoration will increase several times.

This is what I mean: the construction industry was, is and will be system-forming in the country's economy, because the demand for the creation of modern, comfortable, safe, energy-efficient housing in the country is enormous. This is a priority issue for the post-war reconstruction of the country, in which developers, in my opinion, should take an active part: build not for the pro forma or development of donor money, but with an understanding of the real requests and needs of Ukrainians.

If we talk about the product level, then for us, housing construction has always been not about square meters, but about creating a high-quality, modern, safe, meaningful and functional territory for living and development. And now, I think, it is even more relevant. Despite all the challenges and efforts of our northern neighbor to destroy all living things and destroy universal human values, we choose to live here, work, create new things, support each other. Live more is not just a slogan of our company, it is a philosophy of our perception of the world, which we reproduce in each of our projects. In spatial planning, ergonomics of housing, creation of social and household infrastructure, filled with services, in exteriors and interiors.

Yaroslav Korniachenko: We worked on the financial model and master plan of Vlasne Misto, which are integral components of the project as a whole, for more than 5 years before the start of construction and predicted crisis moments in our strategy based on real estate market analysis since 2004. During this long period, there were political and economic crises, the annexation of part of the territory, so an escalation phase was also not excluded. Inflation and the rise in prices for materials were immediately included in the strategy of increasing or restraining the price of our objects. Even at the start, we made decisions based on the level of profitability and predicted the worst options, approved tools for solving deadlock situations and sources of additional financing. The scale of our project allows us to "break" the mind of the client and achieve a good price for the final product, using the best possible materials in our segment. The ratio of the value of the hryvnia and international currencies has somewhat leveled off, had a negative impact on something.

The main principle of our team and project is not to stop, to adapt. It is necessary to be strong and become even stronger. Choosing the independence of the country, we must all fight on the economic battlefield as well: if we stop planning, disband the team, lose hope, go abroad and wait for the state to make the conditions for the return of our citizens, then we need to have more courage to do this to our defenders, our families The state is the nation, the society that creates it. How does a state without people, masters of their craft, win back, rebuild, grow, etc.?

P.M.: When, according to your forecasts, will the prices for square meters in new buildings return to the pre-war level? How much is your square meter worth today?

Natalia Dubyk: Currently, the average price of a square meter in a ready-made apartment in the Greenville Park residential complex is 2200 u. o., and in the one under construction - 2000 u. at. In Greenville residential complex on Pechersk, respectively, the cost of a ready-made apartment is 2300 u. o., and in the one under construction - 2100 u. at.

Prices are currently rising due to the increase in the cost of construction: construction materials, logistics operations, etc. have become more expensive. A return to the pre-war level can be expected only with the stabilization of the military and political situation in the country. In other words, we have to wait for the end of the war.

Oleksandr Nasikovskyi: It seems to me that it is more relevant to talk about the restoration of real demand at the pre-war level. Because it is then that we will be able to talk about an objective, natural price increase at the rates that would support the industry, and not just in response to the increase in the cost of construction, which no one has canceled.

So far, only in certain classes and categories of housing, in complexes that are actually being built and demonstrate a high degree of construction dynamics on the sites, demand is being restored and converted into real deals. For example, from the end of March until today, we were able to restore more than half of the pre-war volume of solvent demand. For understanding: the average indicator on the market reaches 20% in the best case.

Currently, a square meter in the complexes of the DIM group of companies costs from $1400 to $3500, depending on the project (comfort+ or business class).

Yaroslav Korniachenko: I cannot be responsible for all developers, but I have not seen a decrease in prices, only a decrease in demand, the sale of some objects at prices in hryvnias, which, as if in the conversion of the exchange rate difference, looks like a price decrease. But those objects were built at the prices of 2020-2022.

Demand is weak, people continue to re-insure and look for safe places for their families. The consciousness of our society has changed fundamentally, trust in developers is at a zero level, both new ones and those who stopped most of their construction sites or could not adapt to new construction norms and price policies. The price gradually begins to rise — and this is an adaptation to risk insurance, to the increase in the cost of energy resources and materials. Currently, the cost in our project is from $1200 to $1350/m², the differentiation of housing during the construction in 2024 of block houses and low-rise multi-apartment buildings will make it possible to set prices from $850/m².

P.M.: There is a version that by using stockpiles of building materials at pre-war prices in 2022 to complete the construction of business and premium class facilities, Ukrainian developers essentially deprived the state of the opportunity to use these materials for the repair and construction of affordable housing for war victims. Some politicians and representatives of local authorities justify the fact that the reconstruction works are progressing very slowly. Can you comment?

Natalia Dubyk: We do not buy construction resources more than we need according to the projects. Second, almost all building materials we purchased after 24.02.22/XNUMX/XNUMX were purchased at market value. Those Ukrainian manufacturers whose work was stopped due to the occupation or damage to production were replaced by foreign ones. We buy building materials from domestic manufacturers at current prices.

Oleksandr Nasikovskyi: We had stockpiles of construction products, so we used them for some time to continue building housing. Subsequently, all new contracts were concluded at actual prices, because this is a market, no one will sell at a loss, which is absurd. Therefore, shifting the problems of reconstruction onto the shoulders of the market is nothing more than looking for a scapegoat. Such an idea indeed.

I will tell you more, the business class and even more so the premium did not immediately rush to build on the market, on the contrary, understanding the risks associated with the fact that the target clientele moved away, the market focused on comfort and comfort+, business was built point by point, premium too . Therefore, the reasons for the slow recovery must be sought elsewhere.

Yaroslav Korniachenko: I think that those representatives of the authorities who talk about it and seek justification in it should think about morality. We donated many of our materials to help the affected buildings not only within our OTG. Also, most of the temporary buildings, containers, and some mechanized equipment were also handed over to the Armed Forces for social needs, besides, we performed and continue to perform construction works upon requests.

We implement our project in the "comfort" and "comfort plus" segments, we have not observed a shortage of materials as such and do not feel them now, it has become somewhat more difficult with the logistics from abroad of aluminum profiles, glass, thermal board and some natural types of stone for facade decoration. With our purchase volume in 2022, we used warehouse stocks, purchased only imported materials and reinforced concrete.

Bonus: Churchill's military construction projects

One of the most remarkable pages in the history of Great Britain is construction during the Second World War. Little-known facts are explained by the secrecy of the programs, which were implemented under the guidance and strict control of the government and special services. But today, students of architecture and engineering are, of course, told about the mega-constructions of 1939-1945, in particular about "Mulberry Harbor".

1939 is considered the starting point of history. Even a year before the German operation "Blitz", when the aircraft of the Hitlerite coalition mercilessly bombed industrial cities and London, turning thousands of buildings into charred ruins, a secret plan was drawn up in the office of Winston Churchill (at that time the First Lord of the Admiralty) to mobilize the construction industry. She was taken under strict control. Despite the shortage of housing, the British government announced a moratorium on civil construction, including private construction. PRAGMATIKA.MEDIA previously wrote about the rapid construction already after the victory in London and Coventry in the series of articles "Post-war reconstruction of cities". But in the period 1940-1945, any project worth more than 500 pounds (and in London the nuts were tightened to a symbolic amount of 10 pounds) had to get permission from a special department. All stocks of building materials — wood, steel, cement, asphalt, bricks — were also taken under state control and protection.

This did not mean that developers, architects, engineers and builders remained without work. On the contrary, the state provided construction companies with many orders — urgent, guaranteed to be paid at a special rate, and secret.

The underground factory of the Bristol Airplane Company in Wiltshire was built by 10 thousand workers who worked in shifts around the clock. The state invested 7 million pounds in the project (more than 200 million pounds today).

11,5 people, including 100 architects, worked on the construction of the munitions factory in Staffordshire. The government paid 5 million pounds for this facility.

In total, between 1939 and 1945, Great Britain built 444 airfields for the Royal Air Force. This is impressive! But the "Mulberry Harbor" project - a masterpiece of engineering and construction thought - became a record in terms of costs and effect

It was a modular military port made up of many sections of concrete and metal that were towed by water to safe points on the British coast and across the English Channel to Normandy. Between 30 and 40 million pounds were spent on the implementation. 50 people were involved in the construction, and the main part of the work was completed in 6 months.

Thanks to this modular floating port, the US delivered weapons, transport, and manpower to Europe. US President Dwight Eisenhower declared that "the Mulberry effect exceeded our best expectations."

And the caisson modules from the floating port were then used as foundations for rapid post-war housing construction. Nothing was wasted. Perhaps in a few years we will learn after the fact about similar secret structures in Ukraine?