Ukraine Update, September 2023
Before the onset of the war, Lviv had approximately 800,000 residents (metropolitan area 1.1 million). Currently, due to internal displacement in Ukraine, Lviv has an additional 500,000 residents.
Many of the newcomers have relocated to Lviv from other major Ukrainian cities such as Kharkiv, Dnipro, Kyiv, and Odesa, to ensure that their families and businesses remain unaffected by the war. In addition to people, many businesses, especially high-paying IT jobs, have also moved.
I had the opportunity to visit and meet with companies in Lviv in early September. Here is a brief summary of some observations and information that might interest:
Business Opportunities
Lviv is experiencing a significant construction boom. The city is currently building more new residential buildings and shopping centers than ever before.
With 500,000 internal refugees settling in a city of 1.1 million, there's a notable influx of prosperous entrepreneurs from cities in the east such as Kharkiv, Dnipro, and Zaporizhzhia. Local residents prefer buying homes over renting, and there has been a substantial migration of high-paying IT jobs (the average IT salary in Ukraine is $2,500 per month net).
Lviv's real estate prices have risen by 25-30% in the past year.
In addition to intense residential construction, two large war-related trauma hospitals and rehabilitation centers are being built in Lviv, each with 3,000-4,000 beds. There will be nearly 10,000 medical personnel, including 2,000 doctors, in total. Both hospitals are being expanded into larger campuses, which will include housing for injured individuals and visiting medical staff.
On the leisure construction side, there is an exciting project in the works for a large ski resort in the Carpathian Mountains, backed by a prosperous nationwide retail chain. The architectural firm planning the project is exploring expertise in wood construction (CLT). When fully built, the project will consist of 200 buildings with a total area of 1.2-2.0 million square meters and 20,000-25,000 beds.
Next Delegation to Lviv
Our next visit to Lviv is scheduled for October 30th to November 3rd, with 6 spots still available (read more of the program in a previous post)
Other Services
In addition to the mentioned delegations, we also assist Nordic companies in finding partners in Ukraine based on specific criteria.
We actively monitor the market, continuously meet with decision-makers from various companies, and consistently explore opportunities related to reconstruction and other acquisitions with our architectural, engineering, legal, and other partners.
We also help companies validate their product's suitability for the Ukrainian reconstruction market. Our team of industry-specific experts conducts in-depth analyses of product details, pricing, and market competition to determine if a viable opportunity exists.
If you are interested in exploring the Ukrainian market further, please get in touch. Give us a call, and let's discuss how we can assist you.