Volumes of mortgage lending in Ukraine increased by 36% in 2020

Source : 112 Ukraine

The volume of issued mortgage loans in Ukraine increased by 36% to $ 135.5 million (UAH 3.8 billion) in 2020
21:42, 15 February 2021

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The volume of issued mortgage loans in Ukraine increased by 36% to $ 135.5 million (UAH 3.8 billion) in 2020. This is evidenced by the findings of bank surveys on the volume of retail mortgage lending, which were conducted by the National Bank of Ukraine (NBU) in November and December 2020, the central bank’s press service reports.

"Banks reported that they issued 743 loans worth $ 18 million in December 2020. In 2020, banks issued mortgage loans worth $ 135.5 million, which is 36% more than in 2019,” the report reads.

Related: Ukraine's PM promises affordable mortgage at 5%

According to the results of the survey, the mortgage lending market in Ukraine is very concentrated, with almost 88% of new transactions (worth $ 117 million) in 2020 concluded by five banks.

In 2020, the average size of a mortgage loan increased to $ 23,000 compared with about $ 18,400 in 2019. The average size of a loan for house purchase in the primary market was $ 24,313, and $ 23,529 in the secondary market.

In 2020, the largest number of loans were issued in Kyiv – 1,500 agreements for a total amount of $ 49 million (37% of the total number of agreements). The second in terms of the number of mortgage agreements was Kyiv region, with 646 agreements concluded for a total sum of UAH 21 million (16% of all agreements).

As we reported earlier,the real GDP of Ukraine in the fourth quarter of 2020 decreased by 0.7%, compared to the same period in 2019. 

Comparing to the third quarter of 2020, the country's real GDP increased by 0.8% (in the fourth quarter), taking into account the seasonal factor.

Related: How affordable is Ukrainian state 5-7% mortgage program?

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