According to the National Bank of Ukraine, the impact of mortgage lending on the housing market in Ukraine remains minimal. In particular, in the Kyiv region, the level of home purchases with a mortgage approaches 9%, while in the central, southern, and eastern regions of the country, new mortgage loans are hardly issued.
This is reported by Finway
Features of Mortgage Lending for New Buildings
In the segment of new buildings less than three years old, mortgages are used more actively: one in five apartments in this segment is purchased with borrowed funds. This is related to the government program “eOselya,” which focuses specifically on this market. At the same time, in projects that are under construction, the share of mortgage transactions remains low. About 44% of all real estate transactions involve ready housing from developers.
“At the same time, nearly 300 construction complexes have received accreditation for sales through ‘eOselya,’ but most of them have not yet had any apartment sales through mortgages.”
Expectations from the Mortgage Lending Market
The National Bank forecasts an increase in mortgage lending following the update of state support mechanisms. The regulator also emphasizes the importance of implementing additional changes, including the implementation of Directive 2014/17/EU on mortgage credit, the application of European property valuation standards, increased transparency of prices in the real estate market, and the controllability of financing construction projects.