Opinion column by real estate market analyst Viktoriia Smyk

Ukraine’s new housing voucher program for internally displaced persons (IDPs) from temporarily occupied territories has become one of the most important social initiatives in the country’s real estate market in recent years. Officially, the state provides up to UAH 2 million to purchase housing. However, in reality, buyers are already facing additional costs that are not covered by the voucher itself.

As a real estate market analyst, I see this issue becoming one of the main sources of misunderstanding for many participants in the program. People often expect the state support to fully cover the purchase of an apartment or house, but real estate transactions — especially on the secondary market — involve many additional expenses.

What the Housing Voucher Actually Covers

It is important to understand that the housing voucher is intended exclusively for the purchase of real estate itself. The compensation covers the price of the property, but not the additional transaction-related costs.

This means buyers must independently pay for:

• property valuation;
• notary services;
• taxes and government fees;
• document processing;
• other administrative expenses.

At first glance, these amounts may seem relatively small compared to a UAH 2 million voucher. However, in practice, even a standard apartment purchase transaction in Kyiv or the suburbs can cost tens of thousands of hryvnias in additional fees.

Why This Is Critical for IDPs

The key issue is that most voucher recipients are people who lost their homes because of war, occupation, or forced evacuation. For many families, even an additional UAH 30,000–50,000 in transaction expenses becomes a serious financial burden.

In practice, this may create situations where:

• the voucher has already been approved;
• a property has already been selected;
• but the transaction cannot be finalized due to lack of funds for closing costs.

That is why I strongly recommend that buyers calculate the full structure of expenses before choosing a property rather than focusing only on the amount of state support.

Expenses Buyers Often Underestimate

The most commonly overlooked costs include:

• notary fees;
• bank commissions;
• property valuation;
• taxes and mandatory payments;
• registry extracts and official certificates.

This is especially relevant for the secondary housing market, where every transaction may involve its own legal complexities.

Additionally, sellers often try to shift part of their own transaction costs onto buyers, increasing the financial burden even further.

When Buyers May Avoid Pension Fund Fees

There is one important exception: buyers may be exempt from paying the mandatory state pension insurance fee.

This exemption applies if:

• the buyer is purchasing housing for the first time;
• or is officially registered on the housing waiting list.

However, this right must be confirmed with official documentation.

Buyers may need to provide:

• proof of housing registration status;
• information from state property registries;
• confirmation of no prior home ownership;
• documentation regarding unused housing privatization certificates since 1992.

For many displaced people, especially those who lost documents during the war, this process may become another challenge.

How Housing Vouchers Will Affect the Real Estate Market

In my opinion, the housing voucher program will gradually become an important support factor for Ukraine’s secondary housing market, especially in:

• Kyiv;
• Kyiv suburbs;
• major regional cities.

At the same time, the program is already creating a new category of demand — buyers with strictly limited budgets and highly regulated transaction conditions.

For the market, this means:

• growing demand for affordable apartments;
• shortage of liquid properties in lower price segments;
• stronger competition among buyers;
• gradual price increases for compact apartments.

This trend will be especially visible in Kyiv suburbs, where a budget of up to UAH 2 million still allows buyers to find housing, while options inside Kyiv itself continue to shrink rapidly.

Why Legal Verification Is More Important Than Ever

Another trend I am already observing is that growing demand encourages some sellers to bring legally problematic or complicated properties onto the market.

That is why voucher recipients should pay special attention to:

• checking property history;
• reviewing legal documentation;
• verifying the absence of arrests or encumbrances;
• working with professional notaries and real estate agents.

Any mistake may lead to delays — or even the inability to complete the purchase within the program requirements.

Conclusion

The housing voucher program is undoubtedly an important support mechanism for IDPs and an important stimulus for Ukraine’s real estate market. However, buyers should clearly understand that state support does not mean a completely free housing purchase.

Transaction-related expenses remain the responsibility of the parties involved, and these costs may become an unexpected barrier for many families.

In the coming months, the market will gradually adapt to this new demand model. But one thing is already clear: buyers who prepare for every stage of the transaction in advance will have much greater chances of successfully using the program.

Viktoriia Smyk
Real Estate Market Analyst