State affordable mortgage program ‘yeOselia’ has a lot to offer to developers. This includes a large number of real customers, reputational advantages, and the opportunity to grow in times of war. In addition, the company is working on other projects, including a loan product for developers. This was discussed yesterday, October 26, in Kyiv during a meeting of representatives of the construction industry with Yuliia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine. Among those present were Deputy Minister Nadiya Bihun and heads of specialized departments of the Ministry of Economy.
According to Yuliia Svyrydenko, the government is interested in the growth of the construction market and is ready to help developers become more actively involved in ‘yeOselia’ program.
“‘yeOselia’ is one of the key tools to stimulate housing construction and functioning of the construction market in general. Our focus in the program is on the primary market, the intensification of housing construction, which in turn will stimulate the development of related industries. Unfortunately, we currently do not have enough supply on the market, which is why it is so important for us to hold meetings with developers, discuss challenges and needs, so that as many construction companies as possible join the program. Moreover, we have resolved the issue of financing – by the end of this year we have a resource for 10 thousand mortgages, and next year we plan to increase this figure to 12 thousand,” said Yuliia Svyrydenko.
The event was also attended by representatives of UFHC, including Ievgen Metsger, Chairman of Management Board, Dmytro Verbytskiy, First Deputy Chairman, and Andrii Tarasenko, Head of the Department for Alternative Products and Partnership Projects. According to Metsger, the number of applications for a mass mortgage at 7% per year indicates that there is a great demand from citizens for new housing. “When we launched ‘yeOselia’ at 7% in August, we received almost three times as many applications. People are ready and willing to buy primary housing, but they don’t have enough choice yet. Our goal is to build an effective dialog so that you, as developers, are interested in working in the program, and banks make the accreditation conditions transparent and understandable,” he said.
Representatives of developers, in turn, noted that they were interested in an open dialogue and expanding the capabilities of ‘yeOselia’ program. At the same time, they noted the need for partner banks to simplify the rules for accrediting unfinished construction projects so that as many developers as possible could become partners of the program.
Since the launch of ‘yeOselia’, 32% of borrowers have chosen housing on the primary market, and more than 1,300 apartments have been purchased from developers. Currently, 17 residential complexes are accredited by partner banks to sell their apartments in the program.
The total number of loans issued under ‘yeOselia’ has exceeded 4.3 thousand. We have enough funding to increase this number to 10 thousand by the end of the year.
