Mortgage in Ukraine: 851 loans worth 1.6 billion hryvnias issued in September

Mortgage lending in Ukraine in September 2023

According to ХВИЛЯ: In September 2023, banks in Ukraine issued 851 mortgage loans totaling 1.6 billion hryvnias. This figure indicates activity in the mortgage lending market, particularly in the context of both primary and secondary real estate markets.

Of the 851 loans issued:

• 532 were provided on the primary real estate market for a total of 1 billion hryvnias. The weighted average effective rate in the primary market was 8.13% per annum.
• 319 loans were issued on the secondary market for a sum of 621 million hryvnias, with a weighted average effective rate of 9.37% per annum.

The share of non-performing loans in the total mortgage portfolio is 12%.

Regional distribution of mortgage loans

The most mortgage loans were issued in Kyiv region, where 303 contracts were signed for 599 million hryvnias. In the city of Kyiv, 155 contracts were issued for 350 million hryvnias. Additionally, in Lviv region, 46 contracts were issued for 95 million hryvnias, in Ivano-Frankivsk region - 53 contracts for 90 million hryvnias, and in Volyn region - 35 contracts for 61 million hryvnias.

39 banks participated in the survey, which have a share of over 95% of the total gross mortgage portfolio in Ukraine.

Data on mortgage lending in Ukraine indicates a growing interest among the population in acquiring housing, which may be a result of the stabilization of the economic situation and the decrease in lending rates. The increase in lending volumes in the primary market may indicate a recovery in construction activity, which is a positive sign for the development of the real estate sector. However, the share of non-performing loans remains at 12%, indicating potential risks for the financial system amid economic instability.