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📊How eOselya (eHousing) affects the real estate market in Ukraine

The Confederation of Builders of Ukraine, in collaboration with UKRFINZHYTLO, conducted a preliminary survey of the business community regarding the impact of the eOselya program on Ukraine's construction industry.

According to developers' estimates, during the second half of 2024, the share of sales under the eOselya program accounted for 25-30% of total inquiries. Additionally, the average monthly mortgage figures increased 3.5 times compared to the pre-war period.

The main factors contributing to the growing popularity of the eOselya program are considered to be the low interest rate, long repayment terms, the accessibility of the product due to the high-quality online application process through the Diia portal, and the accumulated demand for housing, particularly for internally displaced persons.

Developers noted that the program allows for attracting new social segments of consumers who previously could not afford quality new housing. A large number of military personnel, medical workers, and teachers are purchasing new homes through the eOselya program.

Companies emphasized that it is important for priority to be given to financing housing that is being built. This will help stimulate the economy, create jobs, and launch new projects, as well as encourage developers, despite the crisis, to continue building. Currently, there are almost no ready apartments, which were primarily funded at the start of the program.

Respondents noted that, thanks to the eOselya program, housing sales have increased: 15,000 families have already received preferential loans on favorable terms. Currently, the share of real estate financing from developers stands at up to 40%, which is a higher figure compared to the pre-war period. This is because previously, housing sales were developed through intermediaries and long-term installment plans. Now, the sales mechanisms are becoming more transparent, creating good conditions for financing.

Furthermore, developers are observing an increase in consumer demand and note that, compared to the beginning of the military actions, by the end of 2024, the growth was 15-20%, particularly due to consumers who previously did not have the opportunity to purchase housing due to lack of funds or the ability to pay the commercial mortgage interest rate.

Also, due to the instability of the volume of funding for state programs and accreditation limitations, sales under the eOselya program have a greater impact on the completion of existing projects than on the initiation of new constructions.

Developers noted that the accreditation of projects at the construction stage helps increase apartment sales; however, the main obstacle is the lengthy accreditation process, which usually takes about six months.

📈According to the Ministry of Economy of Ukraine, in the first half of 2024, the production of building materials increased by 37.1% due to the eOselya program. Companies explain this by the increased demand for new housing among Ukrainians, which encourages developers to increase the number of new buildings and automatically raises the need for building materials.

The high demand for materials such as cement, bricks, metal structures, insulation, contributes to the increase in production volumes by domestic enterprises. This reduces dependence on imports and supports the local economy. Along with residential complexes, related infrastructure projects — such as schools, kindergartens, and roads — are often built. This also requires significant volumes of building materials.

Moreover, the growth in construction and production volumes stimulates the labor market: new jobs are created at construction sites and in industry. Increased competition and demand force manufacturers to implement modern technologies and develop energy-efficient materials that meet environmental standards.

📈According to the Ministry of Economy of Ukraine, the amount of taxes paid by developers in the first half of 2024 is 2.2 times higher than in the same period of 2023. Developers note that the eOselya program stimulates the use of transparent financing schemes for construction and housing sales, and they consider such an increase to be an extremely important indicator. It not only demonstrates the recovery of economic activity amidst the full-scale war but also highlights the significant role of the construction industry as a key sector contributing to the budget.

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