Over the past 6 years, the cost of housing construction has increased by an average of 200%. During this time, the sales price index for housing in the primary market was 197%, while in the secondary market it was 160%, according to the analytical mortgage report from the Center for Economic Research and Forecasting "Financial Pulse." Reports TСN. This information is provided by Kontrakty.UA.
"The selling price of apartments is rising more slowly than the cost of construction. However, purchasing an apartment still requires significant resources from citizens, collectively amounting to the average salary over 10 years. Therefore, mortgage lending is becoming increasingly relevant for citizens who do not have sufficient funds to buy housing at full price," noted Dilyara Mustafaieva, head of the analytical department at "Financial Pulse."
Citing data from the NBU in its financial stability report, the expert shared that in 2024, the ratio of new mortgage loans to the number of housing purchase agreements exceeded pre-war levels.
In the first quarter of 2024, this ratio was 5.4% (compared to 3% in the same period in 2021), in the second quarter it was 5.3% (compared to 3.9% in 2021), in the third quarter it was 3.3% (compared to 3.6%), and in October-November it was 4% (compared to 3%).
Mustafaieva indicated that 39 banks issued mortgage loans from January to October 2024. The top three mortgage lenders by loan portfolio volume include three state banks: "Oschadbank," "PrivatBank," and "Ukrgasbank." As of November 1, 2024, their total mortgage loan portfolio issued to individuals in national currency amounted to 83% of the total portfolio volume of all banks.
She believes that the state mortgage program "eOselya" will remain one of the driving forces in the mortgage market in 2025. According to her, from January to October 2024, the volume of loans issued under this program accounted for 97% of the total mortgage loans issued during this period.
"According to the company 'Ukrfinzhytlo,' the largest share of purchased housing under the 'eOselya' program came from the secondary market (67%), the share of ready housing from developers was 24%, and housing under construction was 9%. For comparison: in 2023, the share of housing under construction was only 1.8%," the report states.
The expert emphasized that the increase in the share of mortgage loans issued under the "eOselya" program in new buildings was facilitated by a gradual reorientation of the state program towards the primary housing market. In particular, the age of housing that can be purchased under the state program was limited to 3 years, and the program's coverage was expanded to include the purchase of private houses under construction, among other things.
Real Estate Market in Ukraine - Latest News
According to a study by "OLX Real Estate," in 2024, the demand for purchasing housing has somewhat decreased, but prices for apartments and houses have increased in most cities of western and central Ukraine.
Ukrainians most often take mortgages for one- and two-room apartments in the primary market, primarily in the capital and in Western Ukraine, said Olena Dmitrieva, first deputy chair of the board of "Globus Bank." According to her, the average price of an apartment in the primary market, purchased through bank programs, ranges from 2.3 million UAH to 2.8 million UAH, with the most common down payment amounting to 30% of the housing cost.