In 2025, 40% of loans under the eHousing program will be in the primary housing market
9 January 15:54
Under favorable economic and military conditions, in 2025, about 40% of all mortgages issued under the eHouse program may be in the primary housing market. This forecast was voiced by Olena Dmitrieva, First Deputy Chairman of the Board of GLOBUS BANK, reports "Komersant Ukrainian".
Referring to the data of PJSC “Ukrainian Financial Housing Company” (Ukrfinzhytlo), she recalled that in 2024, due to the systematic reorientation of the state program to the primary housing market, the share of loans issued in new buildings under construction increased 8 times: from 3% in January to 24% in December. The share of finished apartments on credit from developers also increased: from 21% in January to 37% in December.
In her opinion, these results were the result of several important changes in the program, including:
- Expansion of the number of partner banks in the eOselya program to 11 (at the beginning of the program, only 5 banks participated in it).
- Limiting the maximum age of housing to 3 years, except for loans for internally displaced persons.
- Increase in the number of program participants among developers: as of the end of December 2024, 91 developers and 201 projects were accredited in the eHouse program.
“Last year, we predicted a significant increase in the number of mortgage transactions in the primary market. And our forecasts have come true. As of the end of December 2024, the share of the primary market in the structure of government mortgages issued under the eHouse program amounted to 24%. Despite the difficult economic circumstances, such as, for example, accelerating inflation, in 2024 the number of mortgages issued amounted to more than 8.5 thousand for a total amount of more than UAH 14.6 billion, which is the best indicator for 2 years and 3 months of the state preferential mortgage program,” the banker said.
The specialist spoke in detail about the dynamics and quality of loans issued under the eHouse program. Thus, since the beginning of the program, Globus Bank has issued 106 loans in 8 regions of the country for a total amount of over UAH 186 million, of which more than 90% were issued for the purchase of housing in the primary market. According to the bank, 1 loan has already been repaid ahead of schedule, and 35% of loans are repaid ahead of schedule. Among the borrowers, 58% are married and about 50% have children. Over 45% of loans were granted to privileged categories of borrowers at a 3% interest rate (military and security personnel, doctors, teachers, and scientists). More than 80% of loans were issued for the purchase of 1.2-room apartments.
The expert believes that in 2025, the development of mortgages and the eHouse program in particular will depend on a number of important factors. Among them:
- Economic factors. These include GDP growth rates, achievement of the state budget balance thanks to international financial assistance, the NBU’s strategy on the discount rate as the main safeguard against hryvnia depreciation, the situation on the foreign exchange market, the level of purchasing power of citizens, etc.
- Financing of the eHouse program. In the banker’s opinion, the decision to recapitalize Ukrfinzhytl by issuing UAH 20 billion worth of domestic government bonds on the eve of 2025 was important. In her opinion, given the dynamics of 2024, these funds may be enough for the active development of state mortgages in 2025 with the ability to issue loans of up to UAH 1 billion per month.
- Further improvement (liberalization) of the program’s terms and conditions, depending on the requests of citizens.
- Dynamics of housing construction. The gradual reorientation of eHouse to the primary market implies that the state mortgage will allow developers to gradually increase the pace of construction by increasing sales at the construction stage.
- Military factors: from overcoming the consequences of enemy missile and UAV attacks to the situation at the frontline.
- Geopolitical factors: the amount of financial and military-technical assistance to Ukraine, as well as the hypothetical possibility of ending the “hot” phase of the war.
According to Olena Dmitrieva, the state program “eHouse” will remain the main mechanism for mortgage development in 2025. According to her, the share of loans for the purchase of housing under commercial mortgage programs will increase from 3% in 2024 to 10% in 2025, including through joint mortgage programs of banks and developers.
“It is possible that the share of commercial mortgages will also increase in the secondary market, which we saw become more active in November-December 2024 after the government program changed its terms. Veterans’ mortgage programs with rates reduced by 1-2 percentage points should be actively developed,” the banker emphasized.
She described the main characteristics of mortgages under commercial programs as of the beginning of 2025.
- The average cost of an apartment in the primary market purchased under commercial bank programs ranges from UAH 2.3 million to UAH 2.8 million;
- The most common down payment amount is from 30% of the cost of housing.
- The greatest demand is for 1-2-bedroom apartments with an area of 45 m2 to 70 m2.
- Borrowers prefer housing with a stage of completion of 50% or more.
- More than 70% of all loan transactions are for comfort class housing.
- 75% of transactions are concluded for a term of 20 years, 25% – for a term of up to 10 years.
- The overwhelming majority of mortgage transactions (80% to 85%) are in Kyiv, Kyiv region, Lviv, Ivano-Frankivsk, Zakarpattia region, etc.
“In the extremely difficult military conditions, mortgages in Ukraine are supported by eHouse. At the same time, in 2025, commercial banks will purposefully look for effective ways to develop their own mortgage programs at the most affordable interest rates. Of course, the banking sector hopes for favorable economic and military conditions, which will determine the future of Ukraine,” summarized Olena Dmitrieva.
JOINT STOCK COMPANY “COMMERCIAL BANK GLOBUS” (GLOBUS BANK) was founded in 2007.
As of July 2024, the regional network includes 32 branches, including 29 that are part of the unified Power Banking network, which allows it to operate in the absence of electricity.
GLOBUS BANK has confirmed the highest credit rating on the national scale at uaAAA, as well as the deposit rating at ua2 according to the scale of the Expert Rating Agency.
The bank’s priority areas of activity are lending to energy efficiency projects, mortgage lending in the primary market, car loans, and lending to small and medium-sized businesses.
GLOBUS BANK is an accredited partner of a number of government programs: the state mortgage program “eOselya”, the program of preferential lending to small and medium-sized businesses “5-7-9”, “Affordable Factoring”, “Affordable Financial Leasing 5-7-9”, “Energy Independence of Individuals – Household Owners”.
The Bank is a partner of the State Institution “Energy Efficiency Fund” in the programs of lending to condominiums and housing cooperatives “Energodom” and “Grindim”.
The Bank is a participant of the state program “National Cashback”.
on June 25, 2024, GLOBUS BANK became one of the 17 largest Ukrainian banks that signed a Memorandum on lending to energy infrastructure restoration projects.
Chairman of the Board of GLOBUS BANK Serhiy Mamedov is Deputy Chairman of the Board of Directors of the Confederation of Builders of Ukraine and Vice President of the Association of Ukrainian Banks.
