The national program for the restoration and modernization of housing and infrastructure in the regions of Ukraine involves $150-250 billion in investments.
Such figures are published in the Ukraine Recovery Vision “Strong European Ukraine is a magnet for international investments,” presented at a conference in Lugano.
In particular, a study of the situation of displaced persons by region (internal and external migration) will be conducted, a unified state register of citizens in need of housing will be created, the purchase of existing residential apartments will be provided to replenish social and temporary housing funds, the practice of non-profitable rental housing will be introduced, etc.
The national program provides for the construction of new and restoration of destroyed facilities with energy efficiency and barrier-free facilities; renewal of engineering networks with the introduction of innovations (centralized cooling, heat pumps, biomass, etc.); reconstruction and construction of drinking water purification stations, equipment of modern regional drinking water monitoring laboratories, etc.
At the same time, new construction of residential infrastructure must be carried out in accordance with the best practices of urban planning. In particular, a fair transformation of monofunctional cities, the creation of a network of logistics hubs, etc. are proposed.
As part of the national program, the pilot construction of buildings with close to zero energy consumption (NZEB) is planned, including through the restoration of destroyed buildings in accordance with the requirements of the NZEB.
The national program emphasizes the importance of providing the sector with critical materials. In particular, it is planned to localize the production of windows (5-6 million units per year), localize the production of glass (300,000 tonnes per year), localize the production of thermal insulation materials (about 13 million cubic meters per year).
It is planned to build two residential complexes of 50,000 square meters each in Irpin and Borodianka (Kyiv region) in five months, head of the Kyiv regional military administration Oleksandr Pavliuk said in the Telegram channel.
“Thousands of families were left without homes. And our task as representatives of state power is to provide them with new comfortable housing. We have prepared proposals for developers in the region. To solve this ambitious task, we need joint work, synergy of business, local authorities and the state,” Pavliuk said during a meeting with developers in the region on Monday.
Thus, sites have already been selected for the construction of the residential complexes, taking into account the necessary communications and road infrastructure. The project also provides for the construction of bomb shelters, playgrounds and other social infrastructure.
Developers will be able to decide on participation in the project after studying the sketches and terms of reference.
According to the official, the procedures for starting construction work and commissioning for such projects can be simplified at the legislative level.
According to him, in Kyiv region there are more than 42,000 square meters of apartments put into operation and ready for purchase.
“At present, consultations are being held with developers on the recommended price for the purchase of apartments. In addition, each apartment must have all the necessary plumbing and furniture,” Pavliuk added.
Housing construction is resumed in Kyiv: the first project in the capital, where construction and installation work was resumed, was the New England residential complex.
According to the press service of the developer of the Royal House project, starting from April 5, 2022, the construction team in New England began work on the Lincoln house (5th stage of construction), work on other houses of the complex will gradually resume.
The housing price index in Ukraine in July-September 2021 amounted to 115.8% compared to the same period in 2020, the State Statistics Service has reported.
According to its data, prices in the primary market rose by 14.3%. Most of all three-room apartments have risen in price – by 16.3%, the least – two-room apartments (by 13.4%).
According to the State Statistics Service, in the secondary market, housing has risen in price by 17% over the year. Three-room apartments added the least in price – 15.8%, two-room apartments added the most (18.4%).
Compared to the fourth quarter of 2020, housing prices grew by 13.8%, in the primary market by 12.5% and in the secondary market by 14.9%.
The rental price of apartments in Kyiv, Kharkiv and Dnipro in August 2021 increased by an average of 3% compared to spring, in Odesa – by 5%, and in Lviv – by 2%, according to the OLX Real Estate analytical service.
“If last year, after the first lockdown and until the fall, rental prices in Kyiv decreased by 6-9%, then in 2021 the situation is different: housing prices are growing. Compared to April, long-term rent in Kyiv has risen by 3%,” according to the OLX press release.
According to the service, the largest drop in rental prices for apartments was recorded in Kyiv. The average prices for one-room apartments in Kyiv vary on average from UAH 7,000 to UAH 16,000, for two-room apartments – UAH 8,000-UAH 30,000, and three-room apartments – UAH 11,000-UAH 55,700. The highest rates are kept by apartments in Pechersky district. At the same time, the lowest rental prices remain in Desniansky district: UAH 7,000 – for a one-room apartment, UAH 8,000 – for a two-room apartment, and UAH 11,000 – for a three-room apartment.
According to analytical data, in Kharkiv, the cheapest housing for rent is offered in Industrialny, Nemyshliansky, Novobavarsky and Moskovsky districts, where prices for one-room apartments are UAH 5,000-UAH 5,500, two-room apartments – UAH 6,000-UAH 7,000, and three-room apartments – UAH 7,000-UAH 9,000. At the same time, the highest prices remain in Shevchenkivsky district – on average 50% higher than in remote residential areas.
In Dnipro, the average rental price for a one-room apartment is UAH 5,000-UAH 8,000, for a two-room apartment – UAH 6,000-UAH 12,000, and for a three-room apartment – UAH 7,000-UAH 13,000. The lowest prices were recorded in Samarsky district: UAH 4,000, UAH 5,000 and UAH 8,000, respectively.
According to OLX, Lviv has the smallest difference in rental prices between apartments in central and remote areas. So, the rental prices for a one-room apartment vary within UAH 7,000- UAH 8,000, two-room apartments – UAH 8,000-UAH 10,000, and three-room apartments – UAH 8,500-UAH 12,500.
According to the company, Odesa has the lowest prices for long-term rent among cities with a population of over one million. This is due to the decline in the tourist season. Thus, the average rental prices for a one-room apartment are UAH 5,500-UAH 7,000, for a two-room apartment – UAH 6,000-UAH 8,500, and for a three-room apartment – UAH 7,000-UAH 9,500.
At the same time, as we get closer to the sea, prices in Odesa increase: one can rent a one-, two- and three-room apartment in Prymorsky district for UAH 8,500, UAH 12,000 and UAH 19,300, respectively.
The mortgage program, which is being implemented by the government at the initiative of the president of Ukraine through the Entrepreneurship Development Fund, did not affect housing sales, Viktoria Volkovska, the director general of the Finance and Investment Management Association (FIMA), has told Interfax-Ukraine.
According to FIMA research, 53.8% of surveyed managers of construction financing funds did not notice the impact of “mortgage at 7%” on sales and do not expect it in the future. At the same time, 38.5% still hope that it will have an impact on the volume of construction and sales. Only 7.7% are optimistic about the program and consider it as the beginning of active growth in the industry.
“Some 38.5% of respondents see the reason for the not very successful start of the “mortgage at 7%” as the conditions of the program do not suit the borrowers,” Volkovska said.
At the same time, 30.8% of respondents indicated that the terms of the program do not suit lenders and developers, and 7.7% simply believe that the program does not work.
“The fact that borrowers cannot pass financial scoring at the bank because of their salaries in envelopes is not considered a problem,” the expert emphasized.
The FIMA study is based on an online survey of construction finance fund managers, conducted following the results of the first half of 2021.
The Finance and Investment Management Association (FIMA) was established in May 2020. It unites 41 financial companies-managers of construction financing funds in Kyiv, Lviv, Odesa, Dnipropetrovsk, Khmelnytsky and Kharkiv.
