Ukraine’s Mortgage Market Expected to Return to Pre-War Levels by Late 2026: What’s Changing.

Current State of Mortgage Lending in Ukraine

According to Novyny.live: The revival of mortgage lending to its pre-war volume remains a pressing issue for Ukraine’s real estate sector. According to Pervin Dadashova, Director of the Financial Stability Department at the National Bank of Ukraine, the most optimistic scenario could become reality by the end of 2026—provided transparent oversight of developers is enforced and legislative reforms are enacted. She emphasized that achieving this goal will require coordinated efforts from all market participants.

Planned Reforms and Key Obstacles

The proposed changes go beyond legislation, also addressing risk assessment and stronger protections for banks. The Financial Stability Council has already approved a mortgage development strategy, signaling the government’s serious commitment to reviving home lending. The Ministry of Economy is also involved, highlighting cross-agency collaboration on this issue.

Dadashova pointed out that banks will ramp up mortgage lending once the necessary steps become clear. She stated:

“Banks will act when it’s clear how and what to do.”

She also noted that the strategy includes measures to control construction risks and implement legal changes by the end of the year. Calling the timeline ambitious, she remarked:

“Optimistic deadlines… are quite ambitious.”

A critical question remains: what is holding banks back from issuing mortgages? Legislative adjustments and enhanced bank protections are essential for restarting the mortgage market. Which specific reforms are planned by year-end, and who is responsible for driving mortgage development—these are key concerns for everyone involved. A broad recovery of mortgage lending will only happen once these planned changes are implemented and the real estate market stabilizes.

Restoring mortgage lending in Ukraine is a vital step toward economic stability and making housing more affordable for citizens. If the necessary reforms are carried out and oversight mechanisms improve, the real estate sector stands a real chance of recovery—boosting the broader economy. Strong cooperation between government bodies and banks will be decisive in making this strategy a success.