Business news from Ukraine

VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-JUNE OF 2021 (MLN UAH)

VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-JUNE OF 2021 (MLN UAH)

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7% MORTGAGE DOES NOT AFFECT VOLUME OF HOUSING SALES IN UKRAINE

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.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-APRIL OF 2021 (MLN UAH)

VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-APRIL OF 2021 (MLN UAH)

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VOLUME OF CONSTRUCTION WORK IN UKRAINE 6% DOWN

The volume of construction work performed in Ukraine in January-May 2021 decreased by 6.1% compared to the same period in 2020.
According to the State Statistics Service, in January-May, the volume of construction work completed amounted to UAH 54.4 billion.
According to the statistics department, in May 2021 the seasonally adjusted index of construction products amounted to 93.1% compared to the previous month, adjusted for the effect of calendar days compared to May 2020 – 91.6%.
The State Statistics Service reported that in May 2021 from May a year earlier, an increase in the volume of construction work was observed only in residential construction – by 30.9%, while in the segment of non-residential construction it decreased by 4.8%, engineering – by 19.7%.
The share of new construction in the total volume of completed construction work was 40.6%, repairs – 31.6%, reconstruction and technical re-equipment – 27.8%.
An increase in the volume of construction work in January-May 2021 compared to January-May 2020 was recorded in Khmelnytsky (by 20.1%, to UAH 1.4 billion), Ternopil (by 50.6%, to UAH 1.1 billion), Rivne (by 20.6%, to UAH 949.5 million), Volyn (by 10.6%, to UAH 713.7 million), Kharkiv (by 10.6%, to UAH 5.9 billion), Donetsk (by 5.9%, to UAH 2.1 billion) and Ivano-Frankivsk (by 9.8%, to UAH 1.1 billion) regions.
In other regions, there was a decrease in construction volumes. The most significant drop was shown by Chernivtsi (by 48%), Kherson (by 32.7%) and Vinnytsia (by 37%) regions.
As reported, the volume of construction work performed in Ukraine in 2020 increased by 4% compared to 2019.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN 2020 (MLN UAH)

Volume of construction products produced by type in 2020 (mln uah)

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