NBU: Real estate market is recovering, demand is reviving primarily for ready-made housing
Kyiv • UNN
The real estate market in Ukraine is gradually recovering, with a preference for finished housing, although sales volumes remain lower than before the invasion; housing prices are stable in the primary market but rising in the secondary market.
Ukraine's real estate market is slowly recovering, but demand for ready-made housing is reviving. This was stated by Pervin Dadashova, director of the NBU's Financial Stability Department, during the presentation of the financial stability report, UNN reports.
The real estate market is slowly recovering, but positive trends are now only inherent in the secondary market. That is, demand is reviving primarily for ready-made housing. The number of transactions is growing, but remains significantly lower than before the full-scale invasion
According to the report, the number of housing units offered for sale has increased slightly due to the completion of pre-war projects. "However, due to the slow start of new projects, supply will be limited in the long run," the report says.
"The growth of housing prices in the primary market has stopped, while in the secondary market it has slowed down. At the same time, the cost of rent has increased. Thus, the price-to-rent ratio has approached the long-term average for the first time in a year and a half," the report says.
It is reported that mortgage lending under the eHouse program is playing an increasingly important role for the market, but there is no unsubsidized mortgage available at the moment.
It is also reported that the number of housing purchase and sale transactions was on the rise in 2023. The average number of contracts concluded in the second and third quarters of 2023 was almost half the average for the second half of 2022.
"However, buying activity remains almost twice as low as the average for the three years before the 'great' war. Demand is mainly concentrated in the secondary market, with people more willing to buy ready-made housing in safer regions. Investments in new buildings are deterred by both long construction periods and the risks of non-completion, which are exacerbated by the difficult state of the industry," the report says.
Addendum
The peak of credit losses by Ukrainian banks has already passed. This year, banks almost did not make provisions for credit losses.
