July 26, 2025
The government, together with the National Bank and international partners, presented a Strategy for the Development of Mortgage Lending in Ukraine, which should reduce risks for banks and make housing loans more accessible to Ukrainians.
The strategy provides for a phased reform of the entire infrastructure. The main changes will concern insurance against military risks, reform of the regulation of developers, new rules for property valuation, and adaptation to European standards.
However, for the successful implementation of mortgage reform, as noted by RIEL CFO Victoria Gordiychuk in a comment to the leading Ukrainian publication Forbes Ukraine, the changes must cover all front-line sectors: banking, developers, the state, etc.
Despite the fact that the goal of the new mortgage strategy is quite ambitious—to turn it into an affordable mass tool for Ukrainians even in wartime—“one of the main prerequisites is that the changes must be coordinated,” emphasizes RIEL’s CFO. “Otherwise, it may only increase pressure from regulatory authorities.”
As part of its corporate social responsibility, RIEL plans to launch an alternative to mortgages, a rent-to-own (RTO) program.
“This program reduces the overall profitability of projects, but makes housing more affordable for most families,” explains RIEL's CFO.
According to Viktoria Gordiychuk, one of the weak points in the reform may be insurance against military risks, as “this will lead to an increase in the cost per square meter.”
However, overall, the introduction of mortgage lending reform “is a strong and progressive step in the implementation of European standards, which will create the conditions for attracting foreign investment and restoring the construction market,” she emphasizes.
As noted in the publication, Ukraine is currently experiencing one of the largest housing shortages since 1991—more than 600 million square meters, of which 150 million square meters have been destroyed or damaged by the war. Another 450 million square meters have accumulated due to the aging housing stock and limited availability of housing. According to World Bank estimates, more than 13% of residential real estate has been destroyed or damaged, with losses exceeding $58.9 billion.
Meanwhile, in the context of the war, market mortgage lending in Ukraine has virtually ceased to function and exists almost entirely within the framework of the state program “єОселя” (eOselya). As of July 17, 2025, more than 18,200 loans totaling UAH 30.3 billion had been issued. However, the program's capabilities are limited.
