New perspectives for Ukraine’s housing sector: The Government of Ukraine and the World Bank sign a Memorandum of Understanding
An important Memorandum was signed between the Government of Ukraine and the World Bank to support housing reform in the country. This opens up new opportunities for attracting private investment and creating an efficient housing ecosystem that will stimulate economic growth and improve the quality of life of citizens.
In the current conditions, Ukraine faces enormous challenges in the housing sector, especially after the destruction caused by military actions. Recently, an important Memorandum was signed between the Government of Ukraine and the World Bank aimed at supporting housing reform in the country. This opens up new opportunities for attracting private investment and creating an efficient housing ecosystem, which will stimulate economic growth and improve the quality of life for citizens.
The Memorandum of Understanding between the Government of Ukraine and the World Bank was signed by the Prime Minister of Ukraine Denys Shmyhal, the World Bank Vice President Antonella Bassani, and the International Finance Corporation Vice President Alfonso Garcia Mora. The purpose of this Memorandum is to jointly prepare and implement a national housing strategy that will create conditions for citizens to access safe and affordable housing.
As stated in the Memorandum: “Ukraine has taken steps to start reforming the housing sector to create an efficient housing ecosystem with active private sector participation, which would stimulate growth in many areas of the economy and make a significant contribution to enhancing Ukraine’s economic resilience. To this end, Ukraine is finalizing the development of a comprehensive housing policy concept, which will be followed by the preparation of various tools, including a national housing strategy.”
Development of the national housing strategy
The Memorandum provides for the development of a national housing strategy, which will define the main priorities, policies, programs, and timelines for the entire sector over 5 – 7 years. This strategy should ensure compliance with EU requirements and take into account all the challenges facing Ukraine’s housing sector both before and as a result of the war.
The start of work on the national housing strategy project was noted in a joint statement announced by the Ministry of Infrastructure along with partners, including the World Bank, following consultations held on April 3, 2024.
The Ministry of Community Development, Territories, and Infrastructure, with the involvement of a wide range of representatives from international organizations, is working on developing a new housing policy, particularly the draft Law of Ukraine “On the Basic Principles of Housing Policy,” which is the foundation for implementing the new housing policy concept and housing reform in Ukraine.
It is expected that within the framework of the Memorandum, the parties will jointly undertake actions aimed at combining efforts and experience to support the Government of Ukraine in preparing and implementing the national housing strategy. This will include priority measures for legislative regulation and financing of the housing sector, developing incentives for the public sector to attract private sector resources, creating a favorable business environment for private investment in the housing sector, mobilizing private capital through various financial instruments, and developing affordable solutions for home buying and renting.
Private investments and social responsibility
DOMOVA contributes to attracting private investments in the housing sector by creating a favorable business environment for the development of affordable, quality, and safe housing in line with today’s conditions.
This includes developing affordable solutions for the sale and purchase of dilapidated and run-down housing, and mobilizing private capital through investment in construction. Besides economic benefits, the company also works on solving social problems by promoting the renewal and modernization of the housing stock.
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