Mortgages in Ukraine are Growing: 1.6 Billion Hryvnias Issued by Banks in a Month
Mortgages in Ukraine: Positive Dynamics in October 2023
According to ХВИЛЯ: Mortgage lending in Ukraine continues to show positive dynamics. In October 2023, Ukrainian banks issued 809 mortgage loans totaling 1.6 billion hryvnias. A significant portion of these funds was directed to the primary real estate market, indicating a growing interest in new buildings.
In particular, 972 million hryvnias of the issued loans were aimed at the primary market, while the secondary market saw 323 loans issued totaling 632 million hryvnias. The weighted average rate in the primary market was 8.2% per annum, which is an attractive indicator for potential borrowers. In the secondary market, the weighted average rate turned out to be slightly higher at 9.4% per annum.
State of the Mortgage Lending Market
The share of non-performing mortgage loans has decreased to 11%, indicating improved financial stability among borrowers. The highest volumes of mortgage lending were observed in the Kyiv region, where 638 million hryvnias were issued, accounting for 40% of the total market. Kyiv received 348 million hryvnias, Ivano-Frankivsk region received 77 million hryvnias, while Lviv and Vinnytsia regions received 35 contracts each.
14 banks remain active in the mortgage segment, confirming the interest of financial institutions in developing this market. The mortgage lending development strategy has already been approved by the Financial Stability Council, which may contribute to further growth in this sector.
The growth of mortgage lending in Ukraine indicates a recovery in the real estate market and an improvement in the financial situation among the population. The decline in the share of non-performing loans points to an increase in borrowers' solvency, which could have a positive impact on the country's economy as a whole. The approved mortgage lending development strategy may ensure further increases in loan volumes and stimulate the construction of new residential facilities.
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