Over 65% of all home sales in the primary market are made through installment programs, around 30% are purchased at full price, and about 5% through mortgage options, including the government’s "eOselya" program and joint mortgage programs offered by banks and developers.
As of August, the most common installment programs have a 3-year term with an initial payment ranging from 10% to 30% and fixed pricing. Most often, 1- and 2-bedroom apartments ranging from 40 m² to 60 m², as well as smart apartments up to 30 m², are purchased through these installment plans. Additionally, there is a gradual return of the trend to invest in real estate during the early construction stages, when the price is on average 35% lower for buyers than at the stage of building commissioning.
For example, an interest-free installment plan with a 30% down payment and a term of up to 3 years: for a 2-bedroom apartment of 60 m², with an average cost ranging from UAH 2 million to UAH 3 million, the buyer would pay an initial installment of UAH 700,000 to UAH 1 million, with monthly payments ranging from UAH 36,000 to UAH 55,000.
How to avoid the risks of delayed installment payments and still become a homeowner affordably:
- First of all, it's important to ensure the following: the level of activity in the construction of the residential complex or cottage town in question, whether the developer adheres to the declared construction timelines, and whether there are any potential "burdens" (such as legal issues or construction "irregularities") that may impede progress;
- The second equally important factor: check if the developer (or their specific project) is accredited to participate in the government’s "eOselya" mortgage program or if they have joint mortgage programs with commercial banks. Bank accreditation provides an additional guarantee of the safety of purchasing an apartment or townhouse;
- Before making a decision to buy a property, the buyer should carefully consider existing military, economic, and personal risks (as the ongoing war means that a citizen could be mobilized into the Armed Forces of Ukraine);
- It is advisable to choose housing that matches one's financial capabilities to pay for installments without harming the family budget (the monthly payment should not exceed 50% of the household’s total monthly income);
- When selecting an installment program, it is useful to focus on common program trends and conditions and carefully study the developer's proposed agreement to avoid unwanted overpayments (particularly, the option of fixed pricing).
Thanks to flexible terms, citizens can finally become homeowners, while developers are able to continue working and building quality housing.
