Partner banks of the state program of affordable mortgages “eHouse” have accredited 47 developers since the beginning of the year, bringing the total number of accredited developers to 67, the press service of PrJSC Ukrainian Financial Housing Company (Ukrfinzhytlo) reports.
According to the report, 11 developers joined the program in June. As a result, Ukrainians can now purchase housing under the program in 77 residential complexes in 15 regions of Ukraine.
Since the start of the eHouse program, Ukrainians have purchased 3,242 first-sale apartments, including 388 in newly constructed facilities.
The eHouse affordable mortgage lending program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and researchers can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting 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 the eHouse program at a 7% discount.
Under the terms of the program, privileged categories of participants can purchase housing in a house under construction and houses not older than 10 years (in the capital and regional centers), while other participants can purchase housing in a house not older than three years or in a building under construction.
Ten partner banks participate in the program: state-owned Oschadbank, PrivatBank, Ukrgasbank, Ukreximbank, Sens Bank, as well as Globus Bank, Sky Bank and Credit Dnipro Bank, MTB Bank and TAScombank.
According to Ukrfinzhytl, as of July 12, loans were issued to 11,426 participants for UAH 18.1 billion.
Only a third of Kyiv’s new buildings have joined the state program of preferential mortgage lending “eOselya”, the press service of the investment and development company City One Development told Interfax-Ukraine.
“The number of residential buildings in the capital where you can buy housing under the terms of the state mortgage program eHouse is increasing, now there are 48 of them, which is a third of the primary market in Kyiv. The vast majority of them offer housing in completed and commissioned buildings or in the final stages of construction. Only 13 residential complexes in the capital offer the opportunity to buy an apartment at the construction stage,” said Olena Shyshyna, an analyst at the company.
In her opinion, despite the constant changes, expansion of conditions and increase in the number of participants in the “eHouse”, the number of objects on the primary market, where you can buy an apartment under the state program, is still not enough to stimulate interest in new buildings.
According to the program manager, Ukrfinzhytlo, as of June 24, loans were issued to 11036 program participants for UAH 17.472 billion. Of these, only 359, or 3.25%, were for housing under construction.
The eOselya affordable mortgage program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and researchers can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting 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 the eHouse program at a 7% discount.
Under the terms of the program, privileged categories of participants can purchase housing in a building under construction and buildings not older than 10 years (in the capital and regional centers), while other participants can purchase housing in a building not older than 3 years or a building under construction.
Eight partner banks participate in the program: state-owned Oschadbank, PrivatBank, Ukrgasbank, Ukreximbank, Sens Bank, as well as Globus Bank, Sky Bank, and Bank Credit Dnipro JSC.
City One Development is an investment and development company that provides a range of services in the creation and development of real estate. Among the company’s projects in the capital are Novopecherski Lypky, Boulevard of Fountains, and Sviatobor. The portfolio of completed projects includes more than 900 thousand square meters, 600 thousand square meters under construction.
Developers note a high demand for the eHouse program, but there are still not enough transactions to have a noticeable effect on the primary housing market, according to developers interviewed by Interfax-Ukraine.
“At present, the number of apartments purchased under the eHouse program in residential complexes under construction does not exceed 1%. For a more or less tangible impact of the state mortgage on the primary market, this figure should increase to at least 25-30% of the loans issued – up to 200-250 mortgages per month,” said Volodymyr Sementsov, co-founder and managing partner of INSPI Development.
Daria Bedia, Marketing Director of DIM Group, expressed a similar opinion. According to her, while there are not enough transactions under the eOselya program in the primary market, at the same time, installment offers from the developer are in demand.
“We do not believe in eHouse in particular because of the insufficient volumes in the primary market: when at least 300 loans out of 1,000 per month are issued in the primary market, it will feel a certain effect. However, we have hopes for compensation certificates for destroyed housing. They can give an incentive to the market recovery next year,” the expert believes.
According to her, DIM has increased the number of financial instruments for buyers, including long-term installment programs for up to seven years, exchange rate fixing, and discounts. The company also offers individualized installment terms and discounts for military personnel, including installments in hryvnia without reference to the exchange rate and free white box finishing.
KAN Development also offers special conditions for purchasing housing in its projects, including long-term installment plans from the developer. The company noted a small number of transactions under the eOselya program, while the developer has already received the first requests for housing under the housing certificate program.
