Ukraine finds itself in the midst of the largest housing shortage in its history. Against the backdrop of this crisis, significant changes are expected in the state subsidized mortgage program ‘eOselya’, as outlined in the approved development strategy of the Ukrainian Financial Housing Company for 2025–2029.
This is reported by Finway
Main Development Directions of the ‘eOselya’ Program
According to the strategy, over the next five years, the company plans to transition to market lending conditions while maintaining benefits for socially vulnerable groups. Among the key priorities is the scaling up of the ‘eOselya’ program to cover over 70,000 new homeowners. An important innovation will be the expansion of the pool of citizens eligible for a mortgage at a 3% interest rate.
- Launch of new financial instruments, including mortgage-backed securities (MBS), real estate investment trusts (REIT), as well as a lease-to-own program.
- Digital transformation of services, creating an ecosystem called ‘Mortgage on the Phone’ for convenient access to mortgage financing.
- Consolidation of state housing programs within ‘Ukrfinzhytlo’, including the launch of social leasing and lease-to-own programs alongside ‘eOselya’ and ‘eVydnovlennya’ programs.
- Activation of cooperation with international partners and attracting investments to expand housing programs.
- Gradual transition of the company to non-fiscal sources of funding, which will reduce dependence on the state budget.
Scale of the Shortage and Ambitious Goals
If the changes are successfully implemented, ‘Ukrfinzhytlo’ will become the sole operator of state housing programs with a capitalization of 200 billion hryvnias and a complete abandonment of budget financing. According to the company, the area of housing financed under the ‘eOselya’ program has already exceeded 1 million square meters.
“However, the overall need for housing amounts to 600 million square meters. This includes both the 450 million square meters of shortage that existed before the war and the 150 million square meters of property destroyed during the war.”
Considering the average cost per square meter at 38,000 hryvnias, the total potential demand for new housing in Ukraine is estimated at 22.8 trillion hryvnias. Such a massive shortage underscores the need for further reform and expansion of state housing programs to provide millions of Ukrainians with their own homes.