New Mortgage Program in Ukraine Could Revitalize Housing Market: Why 'eOselya' Alone Is Not Enough

The Ukrainian mortgage lending market is reviving, but its development is largely driven by "eOselya." Despite the growth in lending volumes and the revival of the primary market, the share of mortgages in housing purchase and sale transactions remains minimal, and banks are not ready to actively increase lending without enhanced protection of their rights.

This was stated by Elena Dmitrieva, the First Deputy Chairwoman of the Board of Globus Bank, during an analytical panel of the Confederation of Builders of Ukraine, as reported by Delo.ua.

The real estate market is adapting, but demand remains vulnerable

According to Elena Dmitrieva, the first half of 2026 has been a period of gradual adaptation for the housing market to wartime conditions. At the same time, Ukrainians' decisions to purchase real estate continue to depend significantly on the security situation.

"Demand remains very sensitive to massive shelling, power outages, and overall economic uncertainty," she noted.

An additional factor has been the rising cost of housing itself. Due to the weakening of the hryvnia and increased construction costs, property prices have continued to rise.

Despite this, the banker pointed out that housing remains relatively affordable by historical standards. In particular, the ratio of the price of an apartment on the secondary market to annual rent is about ten years, which is considered an acceptable indicator for the market.

Mortgages are growing faster than the overall credit market

According to Globus Bank, as of June 1, 2026, the total volume of mortgage loans in the banking system reached 50 billion UAH. Over the past year, banks' mortgage portfolios have increased by 35%, while the overall loan portfolio has grown by about 10%.

However, even with such growth, mortgages remain a relatively uncommon financial instrument.

"The share of mortgages in the total number of housing purchase and sale transactions is only about 3%," Dmitrieva emphasized.

According to her, mortgage loans are currently held by only about 42,000 Ukrainian families, which corresponds to approximately 0.4% of all households in the country.

The main driver is the state program "eOselya"

The main driving force of the market remains the state program.

"Mortgage portfolios are indeed growing significantly faster than the credit market as a whole. However, the main driving force behind this growth remains 'eOselya.' Without state support, the scale of mortgage lending would be significantly smaller," Dmitrieva believes.

Since the program's inception, about 28,000 loans have been issued for a total amount of 49 billion UAH.

Currently, "eOselya" accounts for 93% of all new mortgage loans issued in Ukraine.

Moreover, the pace of issuance continues to accelerate. If in the first half of 2025 loans worth 5.5 billion UAH were issued under the program, then in the same period of 2026, the amount has already reached 8.4 billion UAH.

Banks are more actively lending for new constructions

One of the main trends of the first half of the year has been the change in the structure of mortgage lending.

The segment of loans secured by property rights to still-under-construction apartments is growing the fastest. According to Dmitrieva, the number of such loans has increased by 146%, and their share in the structure of new mortgages has risen from 17% to 27%.

In addition, loans for purchasing ready-made housing from developers have increased by 31%, while the growth in the secondary market has reached 45%.

On average, banks issue about 207 loans per month for construction housing; another 238 loans are for already completed apartments from developers.

According to the banker, these two segments provide construction companies with about 884 million UAH in financing each month.

"The growth of lending secured by property rights is an important signal for the primary market. Mortgages are increasingly becoming not only a way to acquire housing but also a source of financing for the construction and completion of new housing projects," she explained.

State banks effectively control the market.

Today, only 12 out of 59 banks in Ukraine are issuing mortgages. Ten banks have joined the "єOselya" program, but about 80% of all loans are issued by state financial institutions.

In total, 93% of all mortgage loans are concentrated in just five banks.

At the same time, banks with foreign capital are virtually not participating in mortgage lending.

"єOselya" is Becoming More Accessible

After the introduction of compensation for part of the down payment and payments for internally displaced persons, their share among new borrowers has reached 20%.

Also, starting in December, mobilized military personnel can obtain loans at an interest rate of 3% per annum. Today, they make up about 7% of all participants in the program.

The most numerous category of borrowers remains families of two. For them, the maximum area of housing that can be purchased under the program has been increased from 52.5 to 73.5 square meters.

The Main Barrier - Weak Protection for Creditors

Despite the positive statistics, the banker is convinced that the market cannot fully develop without systemic legislative changes.

The biggest problem she cites is the difficulty of recovering collateral in the event of loan default.

"Under such circumstances, a bank may be unable to recover collateral for years while simultaneously effectively lending to a dishonest borrower without compensation. Without strengthening creditors' rights, the development of a full-fledged mortgage market is unlikely," emphasized Elena Dmitrieva.

The situation is also complicated by lengthy judicial procedures, a moratorium on the realization of certain mortgage items, new requirements from the NBU regarding bank capital, and a high tax burden on the banking sector.

According to the expert, even with high demand, banks may be limited in their ability to increase lending.

What Could Change the Situation

A new impetus for market development could come from a program that "Ukrfinzhylie" is developing in collaboration with the World Bank. In particular, it provides for compensation of up to 20% of the loan amount, reimbursement of interest rates for the first four years, and a minimum down payment of 5-10%.

The total budget of the program is estimated at $390 million. It is expected that in three years it will allow for the issuance of 20,000 to 30,000 new mortgage loans, effectively doubling the current market volumes.

The new model is planned to focus on secondary housing, while "єOselya" will continue to be the main tool for supporting the primary market.

"The new compensation model could make mortgages more accessible to a significantly broader range of citizens, attract new banks to the market, and increase overall lending volumes. At the same time, the long-term prospects for mortgages will depend not only on government programs but also on requirements for bank capital and real strengthening of creditors' rights protection," concluded Elena Dmitrieva.

Let us remind you that the conditions of the state program for affordable lending "єOselya" are changing in Ukraine. War veterans, combat participants, persons with disabilities due to war, as well as family members of fallen defenders will be able to take advantage of preferential mortgages with an interest rate of 3% per annum.

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