Ukraine has launched the Affordable Housing project designed to provide citizens with affordable apartments (up to 4,000 UAH per square meter, 1 USD - 7.92 UAH). Its goal is to provide affordable housing to those who need it but due to their incomes do not qualify for free housing from the state and those who cannot buy it on credit, the Segodnia newspaper reported.

In the first phase (2011-2013) one quarter will be built in six regional centers each for 1,120 apartments, taking 1.5 million UAH.

According to the head of the project drafting group, Vladyslav Nikolayuk, the program will be implemented not with state funds but with loans of foreign construction holdings at 2-12% per annum in foreign currency. "They take money under the guarantee of their insurance companies, enter into an agreement with one of our state banks (Oschadbank and Ukreximbank - Ed.), which gives a credit to state enterprise Affordable Housing created in November 2010," he explained, according to UKRINFORM.

It is planned that the selling price of 1 square meter will be UAH 4,000 with self-cost of UAH 3,500. This means that, for example, one-room apartment would cost 19,000 USD, which is three times cheaper than now in Kyiv, and 1.5 times cheaper than in Kharkiv or Lviv.

If houses are built in 6 regional centers by 2013, then in 2015 construction will also start in other regional centers. 300,000 apartments must be commissioned in 30 years. 50-70% of the housing value will be paid by a citizen who may take the money as a soft loan (the larger the amount, the lower the interest). The rest will be paid by the state.

As reported, in September real prices for resale properties in Kyiv declined by 1.57%. Only in the past two weeks the cost of housing has fallen by 10%. There are few cheap options, but realtors do not see a strong demand either.

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