More than 65% of all housing sales in the primary market are made through installment programs, about 30% are purchased at full price and 5% or more through mortgages – the state program “eOselya” and joint mortgage programs of banks and developers.
This was stated by Marianna Bigunets, Sales Director of GAZDA Construction Company.
According to the expert, before the full-scale invasion, the ratio of housing purchases by various financial mechanisms was as follows: installment programs accounted for up to 35-40% of total sales, more than 50% of sales were recorded for the full cost of the house, and the share of mortgages was 10-15%.
She believes that the growth in the share of housing purchases under installment programs is directly related to several factors.
“Amid economic uncertainty and inflationary processes that also affect the primary housing market, as housing prices may rise by 30% in 2024 compared to 2023, a citizen can, first, buy a home with a minimum down payment (from 10% to 30% of the cost of an apartment or, for example, a townhouse) and with a fixed price, which will protect his or her savings from depreciation. And secondly, their monthly expenses for servicing the installment plan, depending on the cost of housing and the amount of the down payment, will not exceed UAH 36-55 thousand,” the expert argues.
She said that as of August, the most common installment programs are 3-year installment programs with a down payment of 10% to 30% with a fixed price. Most often, 1.2-room apartments with an area of 40 m2 to 60 m2 and smart apartments with an area of up to 30 m2 are purchased with the help of installment programs. At the same time, the tendency to invest in the early stages of construction is slowly returning, when the price for the buyer is on average 35% less than at the stage of putting the house into operation.
Marianna Bihunets gave an example of an interest-free installment program with a down payment of 30% of the cost of the apartment and a term of up to 3 years. Thus, for a 2-room apartment of 60 m2 with an average cost of UAH 2 million to UAH 3 million, the buyer will pay a down payment of UAH 700 thousand to UAH 1 million, and monthly payments can range from UAH 36 thousand to UAH 55 thousand.
According to the expert, currently the most expensive cities in terms of prices in the primary market are Kyiv, Lviv, Uzhhorod and Odesa. In these cities, the average cost per m2, depending on the stage of construction, class of the object, and the area of the apartment, varies from UAH 42 thousand to UAH 47 thousand. She is convinced that it is the price level that requires the developer to look for and implement mechanisms that would, on the one hand, allow citizens to become owners of new housing, and on the other hand, not to stop construction.
“Given the rising cost of housing, installment programs and prices should be proportionate and affordable for the buyer. That is why we note the slow return of the “pre-war” trend of citizens investing in the early stages of construction, as the price is the lowest at such stages. Of course, so far this applies mainly to safe and most comfortable regions, such as Lviv, Chernivtsi, Uzhhorod, Kyiv, etc. It is important that this trend is possible only in the objects of the most reliable companies that not only do not stop construction, but also whose objects are accredited by the state mortgage program “eOselya” and have special loan programs with commercial banks,” she said.
GAZDA Construction Company was established in 2007. During this time, the company’s portfolio includes 13 residential construction projects: more than 1500 apartments have been commissioned. The total area of commissioned real estate is more than 150 thousand m². Currently, 3 projects are under construction in Uzhhorod: ParkLand RC, Grand Hills RC and the new phase of Sherwood Cottage Town. GAZDA does not have a single object under construction.
The company specializes in the construction of mid-rise apartment buildings (5-9 floors), comfort-class townhouses, comfort- and premium-class cottage communities. Apartments range in size from 25 m² to 160 m². Townhouses range in size from 122 m² to 238 m².
In 2023, GAZDA commissioned 22 thousand m². Of these: ParkLand residential complex – 12 thousand m²; Dzherelna townhouses – 1 thousand m², Sherwood townhouses – 9.8 thousand m².
GAZDA offers a variety of options for apartments in its complexes: with a rough finish and individual wiring, or with a ready-made renovation from the developer. In addition, the company has its own design studio, MG Design Studio, which performs repairs from the developer and saves you time and money. About 5% of apartments are offered with a ready-made design renovation, including household appliances, furniture and textiles.
The company is a participant of the state preferential mortgage program “eOselya” (ParkLand and Sherwood residential complexes are accredited to participate in the program (there is a queue).
