"eOselya today and tomorrow: what developers think about the program
The state program of preferential mortgages "eOselya" has been operating for 3 years. Over this time, more than 17,000 housing loans have been issued. The World Bank, the IMF, the Ministry of Economy, the National Bank and the Ministry of Finance are dissatisfied with the results and are preparing changes to the program. What do developers think?
According to Oleksandr Nasikovsky, Managing Partner of DIM Group, the program is in demand: "If in 2024, approximately 25-30% of all inquiries to sales offices concerned government programs, and no more than 10% of them went on to actual transactions. This year, we see that the number of inquiries has remained the same at 30%, but sales on eHouse have increased to 20-25%. People trust, the government supports, and the economy is moving."
Roman Valesiuk, owner and CEO of Futura Hata, agrees: "Today, the eHouse program is one of the key drivers of the housing market. Its impact is especially important now, when supporting the economy through construction is one of the main multipliers of GDP growth. In our comfort-class projects, the share of transactions with ready-made housing concluded through the eOselya program reaches up to 40%. This is an extremely significant result that emphasizes its importance for the entire industry."
Forbes Ukraine writes that statistics confirm the demand for the program, and interest in it is growing. According to Ukrfinzhytl, about 340,000 applications for housing purchase under eHouse have been submitted. Even if some of the applicants have no real intention of buying a home, "There are about 40,000-60,000 applications from those who would like to buy a home," Yevhen Metzger, head of the state program that finances eOselya, estimates the demand.
Do developers see a reason for changes in the program
Lack of funding is a key drawback of the mortgage program, according to developers.
"We are ready to sell more," says DIM's Alexander Nasikovsky, "but the limits on loan amounts per borrower and limited funds in banks do not allow us to increase volumes. The market is becoming more and more dynamic, and we expect the cost per square meter to increase by 15-20%. We hope that the limits on loan amounts will also grow proportionally."
Roman Valesiuk of Futura Hata also says that "We see no need to change the basic principles of the program. The only thing that limits its scale today is the amount of funding. Its expansion can have an even greater effect - both for developers and for the country's economy as a whole."
Yevhen Favorov, Chairman of the Ukrainian Association of Developers, adds that "Our association does not provide formal assessments of government programs, but recognizes their importance for the market. "eOselya has already helped more than 17,500 families, and we appreciate the efforts of the team that implements it. At the same time, its scale is still limited and cannot change the situation systematically."
What changes do the state and partners see in the program?
Civil servants believe that the program should be amended. For example, changes that would allow more military personnel and veterans to take advantage of the benefits. Currently, there are certain restrictions. If a soldier is injured and discharged from service, the mortgage rate changes from 3% to 7%. The Ministry of Economy planned that a 3% rate would encourage people to stay in the Armed Forces. But this and other conditions of the program are going to be changed.
The government is also looking for additional resources to expand the program and other funding mechanisms.
Until improvements are made to the program, the IMF has banned additional funds from being allocated to finance Ukrfinzhytel.
Meanwhile, developers are developing internal lending programs. For example, DIM has introduced its own alternative to the state program and offers hryvnia installment plans for up to 10 years. "We have a preferential rate of 8% per annum specifically for the military, the State Emergency Service and military doctors. At the same time, the increase in construction costs, currency fluctuations and the general rise in prices will not affect the change in the fixed price per m2 in hryvnia at the time of the contract conclusion," says Oleksandr Nasikovsky.
Will the demand for housing grow?
Recently, the Association of Developers together with the sociological company Gradus conducted a survey of housing conditions in Kyiv. The survey results showed that at least 125,000 Kyiv residents plan to buy a home within five years. Yevgeny Favorov adds that "Only 5-7% will be able to do it without financial instruments. For the majority, mortgages, installment plans or government support are critical."
That is why eOselya is an important initiative and has proven to be a market driver. It cannot replace a full-fledged market mortgage, but its impact can be scaled up. This requires a constructive dialog between the state, international partners and developers. The Association is ready to be a part of it.
