After nearly four years of large-scale invasion, Ukraine faces growing challenges in its recovery, the URE Club writes in an article for Property Forum.. According to the updated Rapid Damage and Needs Assessment (RDNA-4) released in February 2025, the total needs for reconstruction and rehabilitation for the next ten years amount to $524 billion.
Key financial indicators for 2025
According to estimates by the Recovery Cost Control project, construction procurement costs amounted to UAH 296 billion in 2023 and UAH 280 billion in 2024 (approximately $7-8 billion, or about 4% of GDP annually). Priority reconstruction needs in 2025 are estimated at $17.3 billion. $7.37 billion has already been secured through the state budget, grants, and donor loans. At the end of the year, there remains a significant financial deficit of $9.96 billion in 2025.
In total, over three years, 46% of damaged medical facilities and 28% of educational institutions have been restored, and more than $1 billion has been allocated to compensate for the destruction of housing.
In 2025, with the support of donors, the Government of Ukraine allocated $7.37 billion (€7.12 billion) to address priority issues in areas such as housing, education, health care, social protection, energy, transport, water supply, demining, and civil protection. The total funding gap for recovery and reconstruction needs in 2025 is $9.96 billion (€9.62 billion).
Sources of destruction and priorities
In the first three quarters of 2025, the leader in terms of amount was the new construction of a water intake from the Southern Bug River and a main water pipeline to supply water to the city of Mykolaiv (4.9 billion hryvnia). “This construction is related to the loss of the Kakhovka Reservoir and water supply in the southern region,” the economist explained.
Also, according to her, the restoration of educational and medical facilities is continuing, and very large sums are being spent on protecting energy infrastructure and repairing the damage that Russia has caused to our energy system.
For the third year in a row, Kyiv and the Kyiv region have the largest volume of construction procurement, but in this region, these purchases are very rarely for reconstruction. At the same time, the Dnipropetrovsk, Kharkiv, and Odesa regions, which have also suffered a great deal of damage from the aggressor, are among the leaders in construction procurement.
The most vulnerable sectors are:
- housing stock — 13% of the housing stock has been damaged or destroyed, affecting more than 2.5 million households.
- transport,
- energy,
- trade and industry,
- education.
Geographically, about 72% of all damage is concentrated in the regions closest to the front line: Donetsk, Kharkiv, Luhansk, Zaporizhzhia, Kherson, and Kyiv regions.
Achievements and progress
Significant progress has already been made: according to RDNA-4, Ukraine has managed to secure approximately $13 billion of the estimated reconstruction needs — this is the result of cooperation between the state, international partners, and the private sector. In 2024 alone, $1.2 billion was allocated directly to the housing sector, which made it possible to implement a significant portion of projects to repair and restore damaged housing. At the same time, more than 2,000 kilometres of urgent repairs to roads, highways, and bridges have been completed in the transport infrastructure, which has become a critically important element in supporting mobility and logistics in a country that continues to live in a state of war.
Challenges and prospects
The main barrier remains a funding gap of nearly $10 billion for 2025. Mobilising the private sector is recognised as critical to the success of the reconstruction program — government resources and donor money do not cover all needs. In addition, reconstruction is taking place in a security environment (shelling and combat operations) that complicates logistics, planning, and implementation of infrastructure projects.
As of 2025, Ukraine has a clear but extremely ambitious reconstruction plan: $524 billion over 10 years, with priorities focused on housing, energy, transport, and social infrastructure. This is not just reconstruction — it is an attempt to “build better than before,” with new approaches, partnerships with international players, and the participation of private capital.
