Today there is a huge pending demand for housing in Ukraine. If in Germany, each person has 42 square meters of housing, in the US – 69 square meters, in Ukraine, according to the State Statistics Committee for 2018, only 23.7 square meters. It should be noted that this figure has stood on practically one mark for 10 years. Construction boom you say? To provide Ukrainians with housing at the advanced level, we still have to build and build.
Excluding temporarily occupied territories in Ukraine there are 993 million square meters of housing. 8.6-9.7 million square meters are put into operation annually and only in the peak of 2015 and 2017 this figure rose above 10 million square meters. But the important fact is that housing is not only under construction, but also declining. And every year the pace of retirement will only gallop. A large part of the structure of the housing stock of Ukraine is the so-called khrushchsivky and panels, the service life of which is nearing completion.
A paradoxical situation arises: Ukrainians want to live in new housing, but cannot afford it, developers are ready to provide the population with quality housing, but do not have sufficient land resources to deploy large-scale construction. The full revival of mortgage lending and the renovation of old housing are capable of providing Ukrainians with housing and, at the same time, launching the Ukrainian economy.
Mortgage rates of 20-25% per annum are incredible. How much do you need to earn to cover this interest rate? It’s financial fantasy. A person who invests in the pit stage and still takes out a loan is a very brave person. But as soon as the NBU releases the standards and banks will start massively lending a mortgage, we will see a boom in the housing market. Many people want to change their home. And the announced bill on the renovation of outdated housing will be very relevant here.
These two topics are practically not coming from the pages of the media, but further discussions are unfortunately not going on. Perhaps on this, among other things, it is worthwhile to focus the future parliament, so as not in words but in practice to prove that their main goal is to serve the people?
Andriy Ryzhykov, CEO and Managing Partner of DC Evolution