Ukrainian developers have identified key steps to activate the real estate market and address housing issues in the country. They believe that the primary task is to increase funding for the state mortgage program ‘eOselya’ and to expand the categories of citizens who can take advantage of its opportunities. They also call for simplifying access to mortgage lending for the population, which will allow for a broader range of participants.
This is reported by Business • Media
State Programs and the Role of Mortgages
At Greenville, it is noted that today the ‘eOselya’ program has not become a driver for the development of the housing market due to a number of restrictions and bureaucratic procedures. Perfect Group emphasizes the necessity of allowing all citizens in need of improved housing conditions to apply for participation in the program. This approach, according to experts, will contribute not only to social stability but also to the overall economic development, particularly of the primary housing market, which has a multiplicative effect on related sectors.
“All citizens who need improved housing conditions should be able to apply. This will stimulate not only social stability but also the overall development of the economy, particularly the primary housing market, which, in turn, has a multiplicative effect on related sectors.”
KAN Development underscores the appropriateness of expanding access to commercial mortgage lending for all segments of the population, with partial compensation of interest rates by the state. At the same time, ‘RIEL’ considers it important to continue cooperation with international partners to financially strengthen existing mortgage programs and develop new mechanisms to support housing purchases.
Current Data and Next Steps
ENSO proposes to implement a large-scale state renovation program for outdated and emergency housing stock, which could be an effective solution for updating housing in many regions of Ukraine.
According to banks, in March, 427 mortgage loans were issued in Ukraine for a total amount of 795 million hryvnias, which is 14% less than in February. The majority of these loans were provided under the state program ‘eOselya’. Since the program’s launch in October 2022, 17,064 Ukrainian families have already received loans totaling over 28.1 billion hryvnias.