What is happening in Ukraine’s primary housing market, and what risks are putting pressure on the state mortgage program?

In the primary housing market, a developer’s financial ability to complete construction on time and wartime circumstances are associated with high risk. And these credit risks fall entirely on the bank and the home buyer, said the deputy head of Globus Bank, Olena Dmitrieva. She named five risk factors that will affect the development of the eOselya preferential mortgage program in the second half of the year:

1. The country’s general economic development: the discount rate, inflation rate, and exchange rate
2. The situation in the banking sector: development of lending, increasing the number of program partner banks
3. The pace of construction and developers’ strategy are both aimed at expanding the mechanisms for purchasing housing at the construction stage.
4. Construction risks: a developer’s ability to continue construction in the face of a possible increase in costs, meeting deadlines for putting objects into operation, and low demand for housing
5. Military risks

However, according to the banker, by the end of the year the number of loans issued under the eOselya program for objects under construction will grow and make up 20% of the total number of preferential mortgages.