Bank-partner of the state program on affordable lending SKY Bank accredited for participation in the program “eOselia” housing complexes of DIM company, houses No. 4 and No. 6 in LCD LUCKY LAND and house No. 3 of LCD “Metropolis” in Kiev, reported in the press service of the developer.
“SKY BANK JSC welcomes the beginning of cooperation with the leading developer of the capital’s real estate market and continues to implement the strategic mission of the state preferential mortgage lending program “eOselia”, making it affordable for citizens to buy housing at the construction stage,” – quoted in the release Director of Retail Business, member of the Board of SKY BANK JSC Vladimir Chernenky.
Managing partner of DIM companies Alexander Nasikovsky said that DIM regularly receive requests from clients about the possibility of buying an apartment under the state program “eOsel”.
“Everyone should have a house – we are sure of it. Since the beginning of the year we have commissioned more than 1,000 apartments and are actively working on developing comfortable conditions for the purchase of housing for our clients, including working with the state program of affordable housing loans,” said Nasikovsky.
Lucky Land (Berkovetskaya Street, 6) is a residential complex of comfort class, designed as a multifunctional district with developed infrastructure. It assumes 23 buildings 13-14 floors high, 5183 apartments in total, with guest parking for 2,5 thousand and underground parking for 356 cars. Under the program “єOsela” available for mortgage one, two- and three-bedroom apartments with the area from 41 sq.m. in the house № 3, which has already received a certificate of readiness, and houses № 4, № 6, which are scheduled for commissioning in the third and fourth quarters of this year.
You can also buy an apartment under the “eOsel” program in building No. 3 of the Residential Complex “Metropolis” (ak.Zabolotnogo, 1), its planned date of commissioning in the third quarter.
Also available on “eOsela” apartments in the completed housing estate “New Autograph” (Kn. Roman Mstislavicha (Generala Zhmachenko), 26).
As reported, the program of affordable mortgage lending “eOsela” has worked in Ukraine since October 2022. For a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing can be claimed by contract servicemen of the AFU, employees of the security sector and defense, medical workers, teachers, researchers.
From August 1, 2023, war veterans, combatants, internally displaced persons (IDPs) and citizens who do not have their own housing larger than the standard area can apply for participation in the “eOsela” program at 7%.
Eight partner banks are integrated into this program: Oschadbank, PrivatBank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank, SENS and Bank Credit Dnipro. You can apply for participation in the program in the mobile application “Diya”.
As of April 30, the volume of loans issued under “eOsel” reached UAH 14.9 billion, loans were issued for 9613 families. At the same time, 2.9% of apartments were purchased on the primary market, 71.7% – on the secondary market, 25.4% – from developers.
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. Six residential complexes of “comfort +” and “business class” category are under construction: “New Autograph”, “Metropolis”, Park Lake City, Lucky Land, A136 Highlight Tower, Olegiv Podil.
In Ukraine in January-March 2023, 1.942 million square meters of housing was commissioned, said the State Statistics Service (Derzhstat).
According to the report, the total is 24905 apartments, of which 4922 in single-family houses, 19983 – in apartment buildings.
Most of the housing is commissioned in the Vinnitsa region – 5669 apartments. In the Kiev region 3621 apartments were added to the housing fund, 2312 in the Kiev region, 1847 in the Lviv region, 1580 in the Ivano-Frankivsk region, 1166 in the Odessa region, 1126 in the Dnipropetrovsk region, 1052 in the Volynsk region, Cherkassy – 891, Kharkiv – 888, Transcarpathian – 795, Ternopil – 703, Rivne – 683, Poltava – 637, Khmelnytsky – 563, Chernivtsi – 530, Sumy – 333, Zhytomyr – 231, Chernihiv – 132.
Less than a hundred new apartments were commissioned in the regions of Mykolaiv (79), Kirovograd (50), Zaporizhzhia (12) and even in Donetsk (5). Not a single new dwelling was commissioned in the first quarter of 2023 in Lugansk and Kherson regions.
Data for the first quarter of 2022 Gosstat did not publish. At the end of 2022, the commissioning of housing in Ukraine decreased by 37.8% compared to 2021 – up to 7 million 110.2 thousand square meters. m.
More than 35 thousand apartments were commissioned in Ukraine in 2022, most of them – in Kiev and the region, according to the real estate portal LUN.
According to its data, about 13.2 thousand apartments were commissioned in Kiev, 7.2 thousand – in the Kiev region. Lviv is also among the leaders – 3.8 thousand, Odessa – 2.3 thousand, Ivano-Frankivsk – 1.6 thousand apartments.
Most queues of new buildings which received a certificate of commissioning were recorded in the Kiev region (66), Kiev (40) and Lviv (32). Over ten queues are also commissioned in Ivano-Frankivsk (17), Odessa (12), Ternopil, Lutsk and Khmelnytsky (10).
At the same time, the number of objects at the start of construction in 2022 was halved: as for the third quarter, construction began on 68 thousand new apartments, according to the portal.
According to LUN, interest in buying a home has decreased by half compared to the prewar beginning of the year. Thus, in Kiev the figure is 45% of February, in Lviv – 54%, Odessa – 43%, Uzhgorod – 68%, Dnipro – 57%.
At the same time the cost of housing has increased despite the decline in demand. According to the portal, the cost per square meter in the most popular class of housing – “comfort” – in the capital increased by 37% to 37 thousand UAH, in Lviv – by 60%, to 38.3 ths. In Lviv – 60% increased up to 38.3 thousand UAH, in Uzhgorod – 57% up to 34.2 thousand UAH, in Ivano-Frankivsk – 63% up to 222 thousand UAH, in Odessa – 56% up to 35.9 thousand UAH, in Dnipro – 44% up to 33.1 thousand UAH, in Poltava – 37% up to 30 thousand UAH.
By the end of the year the cost of the cheapest one-bedroom apartment in Kiev increased by 66% since the beginning of the year and is 2.3 million UAH, 2-bedroom – “plus” 70%, 3.2 million UAH, the price of 3-bedroom increased by 76% to 4.4 million UAH.
LUN estimated that the number of new buildings available for sale in Kiev is 83% (182 new buildings by the end of the year) from the prewar beginning of the year, in Lviv – 103% (121 new buildings), in Odessa – 72% (79 objects), in Dnipro – 63% (42), Ivano-Frankovsk – 98% (70), in Khmelnytsky – 77% (56), in Ternopil – 132% (69).
“Due to the war and losses in the economy, housing has become less affordable, and the need for it – much more acute. It can already be argued that more than 1 million families in Ukraine need new housing. It is impossible to satisfy this demand with the apartments that have already been built, because so many apartments are not on sale, and that is why Ukraine is waiting for the Big Housing Construction phase. The state understands this and has plans to expand the scale of preferential mortgages, but this will still not be enough to cover the needs of IDPs, so we expect further steps from the authorities”, – summarized Denis Sudilkovsky, marketing director of LUN.
LUN, through its international brand Korter, has sold more than 200 apartments abroad, LUN development director Andriy Mima told Interfax-Ukraine.
“During the nine months of this year, we sold more than 200 apartments abroad, most of them in Georgia. In September, we unexpectedly received our first income in the UAE: a buyer bought an apartment from a developer through our website https://Korter.ae, and we received this is a commission,” Mima said.
He recalled that Korter is an international brand of LUN, with a similar product, a catalog of new buildings. The service launched a few years ago in several countries in Europe, Asia and the Middle East. At the same time, Korter’s business processes are slightly different from the parent company.
“In some countries, developers are not used to paying for marketing, so our business model “like in Ukraine” did not work. But they are happy to pay success-fee in the form of a commission. We had to restructure business processes to bring buyers from the site directly to sales departments,” Mima explained.
According to Mima, the user contacts the support service, Korter agents help him complete the transaction. For example, if necessary, the client is met at the airport and brought to the sales department.
He added that at present, the company’s international revenue exceeded its domestic one.
The State Fund for Support of Youth Housing Construction announced the purchase of housing for further leasing to internally displaced persons (IDPs) from large families whose housing was destroyed as a result of Russian aggression.
As reported in the release, a total of 100 apartments are being purchased: in Kyiv and Chernihiv regions, 35 each, in Sumy 20 and Zhytomyr 10.
Housing, renovated and furnished, can be purchased from individuals and legal entities-owners of such housing.
The minimum total area of housing is 31.5 square meters, maximum – 94.5 square meters.
As reported, by Resolution of the Cabinet of Ministers No. 495 of April 29, 2022, the procedure for the buyout, construction of housing for the purpose of transferring to internally displaced persons for temporary residence was approved.
The State Youth Housing Fund can purchase ready-made housing, provided that the cost of acquiring 1 square meter of the total area of housing (taking into account all mandatory payments paid by the buyer when purchasing housing) does not exceed the marginal cost.
The marginal cost is calculated based on the indirect cost of housing construction in the regions of Ukraine determined by the Ministry of Regional Development and increased for: cities – regional centers, cities of regional significance with a population of more than 300,000 people and settlements located in areas adjacent to the borders of cities – regional centers – 1.75 times; other settlements – 1.5 times.
For example, in February 2022, the Ministry of Regional Development approved an indirect cost for Zakarpattia region of UAH 13,892/square meter, and for Kyiv – UHA 18,704/square meter. This means that the marginal cost of housing ready for occupancy, which can be paid by the state or communities, in Uzhgorod is UAH 24,311/square meter, in Kyiv it is UAH 32,732/square meter.
The median price of apartments in the secondary market of Kyiv was $1,308 per square meter in July 2021, which is 13.7% higher than in the same period in 2020, the press service of the address.ua portal has told Interfax-Ukraine.
“In the secondary residential real estate market, a stable but moderate trend towards price increases remains – the median price increased by 1% in July 2021 compared to June 2021 and by 13.7% compared to July 2020,” City Development Solutions Director Roman Herasymchuk said.
At the same time, according to him, the median price of one-room apartments presented in the database of the address.ua portal increased to $1,400 per square meter (by 1.2% per month and by 17.7% per year), two-room apartments – to $1,301 per square meter (0.6% and 18.8%), three-room apartments – to $1,181 per square meter (less than 1% compared to June and an increase of 7.7% per year).
“The continuing rise in prices is due to objective long-term factors such as stable demand, good indicators of profitability of investments in real estate and a systematic rise in the cost of construction, allows the secondary market to compete with the primary market, the volume of finished housing on which is not sufficient to meet the needs of the population in square meters,” Herasymchuk said.
According to him, in July, apartments in the price range of up to $30,000 were in high demand – 33% of requests to the database of the address.ua portal. The interest for housing in the range from $50,000 to $70,000 was in 29% of inquiries, from $30,000 to $50,000 in 21%, and over $70,000 in 17%.
Some 42% of inquiries to the database of the address.ua portal concerned one-room apartments, 37% of portal users were looking for two-room apartments, and 19% for three-room apartments.
At the same time, the greatest demand (38%) was for the category of apartments with an area of 50-80 square meters, 37% of requests were for apartments with an area of 35-50 square meters, 20% were interested in apartments up to 35 square meters. Housing over 80 square meters were interesting only for 5%.
“In the coming months, we can expect an increase in market segmentation – the main demand is for new housing built in the 2010s, which increases the discrepancy in prices between the old and new housing stock,” Herasymchuk said.
According to the expert, the main factor holding back the price growth is the pool of less liquid apartments in the old housing stock, which accounts for more than half of the current supply.
Herasymchuk predicts that the trend towards price increases in the coming months will continue.
The results of the study of the secondary real estate market in Kyiv for July 2021 are based on the analysis of ads posted on the real estate search portal address.ua, as well as user activity (479,519 visits in July 2021).
