Kyiv real estate gets 35 million euro wartime boost
Ukraine’s real estate sector will see a 35 million euro ($40.7 million) cash injection from the European Bank for Reconstruction and Development (EBRD), as construction begins to bounce back in some parts of the country.
The bank announced the program with Ukrainian real estate developer Stolitsa Group on March 6. The loan will help develop the Varshavsky residential complex in Kyiv, as well as future residential projects by the company.
While wartime risks in the property sector have largely put off investors, the loan will be backed by the EU’s Ukraine Investment Framework Guarantee Agreement, making it less risky.
Ukrainians will be able to buy homes in the complex under the eOselia affordable mortgage program. The government introduced subsidized mortgages in October 2022 to encourage wartime home buying, with over 22,000 people — largely from the military — benefiting in the first three years, according to Interfax Ukraine.
As Russia continues to bombard Ukrainian homes, the embattled country will need $90 billion to recover its housing sector, according to the latest World Bank estimates.
Labor shortages, high material costs, and threats from Russian drones and missiles have cut construction by a third compared to pre-war levels. But building projects are bouncing back in some regions, and construction grew by 24% in monetary terms last year compared to 2024, according to the GMK Center, a consultancy.
Despite regular Russian strikes, Kyiv is one of the most popular places for new building projects, alongside the safer Lviv and Ivano-Frankivsk oblasts.
The EBRD, one of Ukraine’s biggest foreign investors, previously signed a €100 million loan facility for affordable housing in Kyiv Oblast in December 2025. The project will provide homes to veterans, the elderly, and displaced people, of whom 4.6 million lack housing.
