Over the next five years, the Ukrainian Financial Housing Company (Ukrfinzhytlo), which ensures the functioning of the mortgage lending market in Ukraine and introduces financial and credit mechanisms to provide citizens with housing, will transition to market lending conditions while continuing to offer preferential terms for vulnerable groups. This plan is outlined in the company’s Development Strategy for 2025-2029.
The key priorities are:
- Scaling the eOselya program to cover more than 70,000 new homeowners. It is planned to expand the category of citizens eligible for the 3% rate.
- Introduction of new financial instruments, in particular mortgage-backed securities (MBS), trust funds (REIT), and launch of a lease-to-buy program.
- Digital transformation of services and creation of the Mortgage in Your Phone ecosystem.
- Readiness to consolidate state housing programs within Ukrfinzhytlo. In addition to the eOselya and eReconstruction programs, it is proposed to introduce social rent and rent with the right to buy through Ukrfinzhytlo.
- Active cooperation with international partners and attraction of investment.
- Further transition to non-fiscal sources of financing.
After all the changes are implemented, Ukrfinzhytlo should become the sole operator of housing programs with a capitalization of ₴200B ($4.8B), without any funding from the state budget. The company’s strategy also indicates that the total area of housing loans issued under the eOselya program will exceed one million square meters.
However, the total housing need is 600 million square meters, which includes 450 million square meters of pre-war deficit, and 150 million square meters of properties destroyed during the war. With an average cost of ₴38,000 per square meter, the total potential demand for housing in Ukraine currently reaches ₴22.8T ($550B).