Page 100 - UKRRptJul24

are under construction. In the future, the volume of apartments in new developments will decrease, new projects will be almost non-existent in the market, and those that were started before the war will be completed and resold. The potential for a reduction in the primary market's available volume in the next year or two is 40%.
What is happening in Ukraine's primary housing market, and what risks are putting pressure on the state mortgage program? In the primary housing market, a developer's financial ability to complete construction on time and wartime circumstances are associated with high risk. And these credit risks fall entirely on the bank and the home buyer, said the deputy head of Globus Bank, Olena Dmitrieva. She named five risk factors that will affect the development of the eOselya preferential mortgage program in the second half of the year:
● The country's general economic development: the discount rate, inflation rate, and exchange rate
● The situation in the banking sector: development of lending, increasing the number of program partner banks
● The pace of construction and developers' strategy are both aimed at expanding the mechanisms for purchasing housing at the construction stage. ● Construction risks: a developer's ability to continue construction in the face of a possible increase in costs, meeting deadlines for putting objects into operation, and low demand for housing
● Military risks
However, according to the banker, by the end of the year the number of loans issued under the eOselya program for objects under construction will grow and make up 20% of the total number of preferential mortgages
Ukraine unveils the Land Bank project, allowing farmers to lease state lands through auctions. The State Property Fund (SPFU) presented its Land Bank project, which allows farmers to lease state land transparently and competitively through Prozorro.Sales online auctions. The starting price for these leases will be 12% of the regulatory monetary value of the land, and lease agreements will be concluded for 14 years for annual plantations and 25 years for perennials. Soon, the Cabinet of Ministers is expected to approve the decree on the first pool of land plots encompassing 104,200 hectares, which will then become available for rent. The plots will be auctioned at the end of June - the beginning of July 2024. These lands are in different regions of Ukraine, which will enable farmers from all over the country to participate in the auctions. "The Land Bank project is designed to use the land resources at the disposal of the state as efficiently as possible and to support agricultural producers, especially those who lost their land due to the war," commented SPFU officials.
According to the Association of Real Estate Specialists of Ukraine, the demand for rental apartments in Kyiv increased sharply in May-June, leading to a 15-20% price increase. The situation in Kyiv is affected by migration across the country. Demand has increased due to people from the frontline regions leaving Zaporizhzhia, Kharkiv, and Sumy.
Commissioning of housing in Ukraine in the first quarter of the year increased by 12.2% compared to the same period last year—up to 2.178mn square meters, the State Statistics Service reports.
100 UKRAINE Country Report July 2024 www.intellinews.com