Quality and Features Make Government Housing for Displaced Persons Pricier Than Private Options

Alla Basalaieva on Why State-Built Housing Costs More

According to Главком: In an interview with Glavkom, Alla Basalaieva, head of the State Audit Service, addressed the reasons behind the higher price tag of government-provided housing for internally displaced persons (IDPs) compared to commercial real estate. She explained that the cost per square meter for homes built or restored under state programs exceeds that of many private developers.

For instance, in the Kyiv region, the price per square meter under the recovery program ranges from €1,175 to €2,240, while the average market rate falls between €560 and €950. According to Basalaieva, the government price includes several premium features not typically found in standard commercial housing:

• energy efficiency upgrades,
• installation of solar panels,
• heat pumps,
• and inclusive design for accessibility.

'The square meter of housing rebuilt under the recovery program includes a number of additional quality features,' Basalaieva emphasized.

Additionally, in Lviv, apartments come fully furnished, which further drives up costs. Basalaieva noted that the issue isn't solely about price per square meter-it also involves ensuring developers and contractors complete projects on schedule. 'So the problem is not just the cost per square meter,' she added.

Plans for Transparency and Construction Oversight

Authorities also aim to create a unified database of construction material prices for state projects. This initiative is designed to increase transparency and control over spending in the IDP housing sector. Alla Basalaieva concluded:

'When people move in, they should see not bare walls but a ready and comfortable home: with furniture, tiles, quality windows and doors, and most importantly-a shelter.'

The higher cost of state housing for internally displaced persons stems not only from these added quality features but also from the commitment to ensure livable conditions. Establishing a centralized price database for building materials is expected to help reduce expenses and improve accountability in public projects. This, in turn, should positively impact the pace of housing restoration for IDPs and meet their need for comfortable living spaces. Strengthening oversight of project deadlines is also a key factor in improving the overall situation in this area.

As the government seeks to enhance the quality of housing for internally displaced persons, it is also taking steps to ensure financial transparency in the construction sector. One such initiative is the establishment of a centralized database for construction material prices, which aims to provide oversight on state-funded projects. This move is expected to contribute to better budgeting and resource allocation, ultimately benefiting the quality of homes provided to those in need.