Business news from Ukraine

Share of installment purchases in housing market has increased – expert

30 April , 2024  

The share of transactions for the purchase of housing on the terms of installments in March 2024 reached 95%, while a year ago the figure was 85%, and in the pre-war period – 70%, follows from the data of the group of companies DIM.

According to DIM, while the share of installments is growing, the rate of full payments on home purchases has fallen to 5%. At the same time last year, full payments accounted for 15% of transactions, and in the pre-war period – 30%.

“The greatest demand among customers are programs of interest-free installments, long-term installments from the builder from 3 to 5 years, installments for the first installment – payment of the first installment within 3 months, the program ‘eOsela’ for ready and under construction apartments, fixing monthly payments for the first year of installments, ‘vacations’ for installments, for example, in the winter months, and other promotions,” – said the marketing director of the group DIM Daria Bedya at the discussion panel DIM Talks.

According to her, as of March 2024, half of the structure of transactions was concluded with the first installment of 20-30% of the cost of the apartment, while a year ago they were only 35%, and in March 2021 – only 15% of the total number of contracts.

Another 20% of transactions today are concluded with a down payment of 10-20%, and only 10% of transactions – with 31-50%, while in the pre-war period this option was more popular (35% of transactions).

According to Bedia, when buying a one-bedroom apartment in 2024, clients more often choose housing with an area of 40-45 square meters, which is in line with the indicators of previous periods. At the same time, apartments with the area of 45-55 square meters have lost popularity after the start of full-scale invasion: transactions for their purchase today account for 5% of the total number against 20% in 2021.

According to DIM, 90% of transactions for the purchase of two-bedroom apartments concern housing with an area of 55-68 square meters, and objects of 70-82 square meters occupy only 10% of transactions, while before the full-scale invasion they occupied 40% in the structure of sales of two-bedroom apartments.

As for three-room apartments, 70% of their sales fall on the most compact variants – 80-85 square meters. m. According to DIM statistics, this trend has only intensified over the last three years.

As reported, in the first quarter of 2024, DIM Group commissioned two objects for 1,060 apartments.

DIM Group was founded in 2014 and consists of six companies covering all stages of construction. To date, it has commissioned 12 houses in six residential complexes with a total residential area of more than 218 thousand sq. m. At the stage of construction – six residential complexes of the category “comfort +” and “business class”: “New Autograph”, “Metropolis”, Park Lake City, Lucky Land, A136 Highlight Tower, Olegiv Podil.

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