“The situation on the real estate market remains difficult due to military risks – NBUThe real estate market of Ukraine has slowed down due to military risks and financing difficulties. The NBU is developing measures
to support mortgages and implement EU norms.”, — write: unn.ua
The situation with the real estate market has deteriorated somewhat recently. The number of transactions concluded is not growing as rapidly as it used to be. The recovery factors that took place in the first year after the full-scale invasion are slowly running out. Currently, mortgages finance a small share of transactions, although the affordable offer from eOselia continues to be in effect, but unfortunately this impetus has a rather weak impact on the overall activity of the real estate market.
She also added that housing acquisition is not very active, which is due to both military risks and the risks of financing the real estate market itself.
Despite the fact that housing affordability indicators remain at historically low levels, the price to rent, the price to income, they are quite moderate by Ukrainian comparisons, but this does not encourage more active housing acquisition, because the market is very constrained by military risks. On the other hand, what constrains the market and affects the dynamics of mortgages is also significant risks of financing the real estate market itself and the construction market.
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The official noted that the NBU has provided for a number of steps that will help to cope with the risks associated with the impossibility of developing mortgages.
In our mortgage development strategy, we have provided for steps to respond to all the key challenges associated with the risks associated with the impossibility of active mortgage development. This concerns improving the conditions of state support and calibrating support through eOselia, and introducing mechanisms that rely more on the liquidity of the banks themselves. This also concerns certain infrastructural changes, improvement of market regulation.
Dadashova added that EU norms are also being actively implemented into Ukrainian legislation, which regulate the relationship between creditors and borrowers under a mortgage.
Also, the implementation of the norms of the European Union into Ukrainian legislation regarding the relationship between creditors and borrowers under a mortgage
SupplementMembers of the NBU Monetary Policy Committee suggest a return to easing monetary policy in the second half of 2025, however, due to inflationary risks, the NBU may keep the discount rate at the current level for longer.