Ukraine is on the verge of a housing shortage crisis
5 January 11:17
Ukraine may face a shortage of supply in the residential real estate market in the near future, especially after the security situation improves.
This was stated by the chairman of the Ukrainian Association of Developers Yevhen Favrov in an interview with Delo.ua, "Komersant Ukrainian" reports.
According to him, during the full-scale war, the volume of new construction has decreased significantly. At the same time, the launch of many projects was postponed due to high risks, rising costs, and limited demand. At the same time, the potential demand for housing has not disappeared, but has only been postponed.
Favrov draws attention to the upward trend in sales as the situation at the front improves.
“This indicates that demand is accumulating, but supply is not keeping up,” he said.
The expert also emphasized that if the security situation stabilizes and some Ukrainians return from abroad, the market may face a shortage of ready-made housing.
Additional factors that may exacerbate the shortage are rising construction costs, lack of financing and limited access to mortgage instruments.
According to the head of the Ukrainian Association of Developers, the first or second year after the security situation stabilizes may be a critical period. Demand will recover quickly, and new projects will not yet have time to enter the market.
“Construction is a long cycle. It takes an average of two to three years from the start of the project to the commissioning of the building. Since there are not enough new launches today, when demand increases sharply, the market may not have the required amount of supply,” Favrov explained.
Favrov emphasized that in order to reduce the risks of a shortage, a predictable government policy, expansion of financing programs, and creation of conditions for launching new housing projects today are needed.
