War is war, and construction is according to schedule. Over time, the belief in the inevitability of victory only strengthens, and along with it, the ambitions of the builders grow stronger. Together with the state, they strive not only to develop a new housing stock, but also to qualitatively reconstruct the old one. A new page in the history of Ukraine will begin in worthy walls, the construction of which is already in full swing.
Reconstruction of outdated housing stock
The old housing stock led by the famous "Khrushchevkas" has been troubling the authorities for a long time. The first attempt to get rid of them in favor of newer housing was back in 2006. However, then it remained without result. With the advent of 2022, this topic was tackled more fruitfully. So much so that already in the first reading the corresponding document was adopted. It is clear that the war got in the way of these plans, as well as many others. However, now is the time to change the situation. The head of the parliamentary committee on the organization of state power, Olena Shulyak, reports that the project on the global reconstruction of the outdated housing stock is being prepared again. According to experts' forecasts, it should be considered in the second reading before the end of 2024.
According to draft law No. 6483, which is taken as a basis for further actions, the changes will apply not only to "Khrushchev" buildings, but also to other outdated buildings. As of September 2024, there are more than 45,6 old housing stock buildings and about 17 buildings in a state of emergency in Ukraine. Renovations will take place gradually, so the first changes will affect only part of all buildings, namely:
- built before 1919 – 7 buildings, of which 646 are in a state of emergency;
- built in the period from 1920 to 1953 - 9 structures, of which 693 are in a state of emergency;
- built in the period from 1954 to 1969 - 7 "Khrushchevkas", of which 192 are in a state of emergency;
- built from 1970 to 1089 - 5 houses, of which 364 are in a state of emergency.
After planning works, it will be the turn of the quarters of the old housing stock, built in 1990-2010 (785 buildings). Objects included in the list will be subject to reconstruction or more delicate renovation, namely:
- insulation of facades;
- replacement of outdated communications;
- installation of new windows;
- replacement of worn engineering equipment;
- increase inclusivity.
Therefore, for each separate project, there are only the following options for the development of events: complete demolition, improvement, forced transfer of the land plot in case of "public necessity". Decisions will be made individually after technical inspection, energy audit and calculation of the cost of repair works. By the way, all further work will be carried out at the expense of developer investors.
The fate of the residents of outdated buildings
General improvement does not always have the same positive effects at the level of a specific person. We are talking about the residents of those buildings that will fall under the new draft law. Their fate will depend on the fate of the house:
- during renovation or carrying out certain construction works, residents will be relocated to "maneuverable", i.e. temporary, housing;
- if a decision is made to demolish the building, its residents can also be moved to "maneuverable housing" during the construction of a new one, or they will immediately be provided with apartments in already put into operation new buildings whether they will pay monetary compensation for the lost dwelling.
Back in 2006, during the first attempt to pass the draft law, there was a stir on registration- more than 20 people could live in one apartment of the old housing stock. In this way, these pitiful entrepreneurs hoped to get as many free square meters as possible as compensation for eviction, because according to the Housing Code, they could claim 13,65 m²/person. However, this scheme will not work now. In exchange for the lost housing, the person will receive a new apartment of the same area. For greater fairness, other rules will apply. Thus, in order to ensure price fairness during resettlement in other areas of the capital, a single coefficient will be established, according to which compensation in the amount of 1 hryvnias is provided for 36 m² of lost housing.
New apartments with similar areas and layouts will be provided instead of the old ones. It is at this point that a somewhat dangerous moment appears. Old-style planning has long gone out of fashion, so new projects may have additional square meters for which the state will not pay extra. If, by prior agreement, the resident agrees to contribute funds from his own pocket, and later is unable to do so, he will be left without a roof over his head. To prevent this from happening, the state promises to develop special mechanisms to protect citizens.
Reasons for paying attention to the old housing stock and its projected value
Developers wholeheartedly strive to get rid of "Khrushchev" for the simple reason that they take away promising locations from them. Most of the objects of the old housing stock are located in the best parts of the districts. Yes, the most Khrushchevs in Kyiv are in Lukyanivka and in the lower part of Pechersk. In these areas, the cost per square meter is significantly higher than in others. The lack of space for the construction of new residential complexes forces developers to look in a new way at those rare buildings that once inspired them. In addition, one typical "Khrushchevka" with 4 entrances can accommodate only 80 apartments, while only 1 entrance of a top residential complex is designed for more than 100 apartments. Even if the residents of Khrushchev will have to be relocated to the new project, the developers will not lose their profit. Also, the replacement of existing buildings with larger ones will help the state to solve the problem of new housing under the program "is Recovery".
With the beginning of the full-scale invasion, "Khrushchevkas" again became the favorites of the real estate market, because their thick walls and the presence of a gas stove instilled faith in greater reliability and autonomy. Thanks to this, even the most neglected, at first glance, buildings still hide valuable objects behind peeling walls. After draft law No. 6483 enters into force, even the threat of a ballistic attack will not help keep housing prices down. Experts predict a collapse in prices for "Khrushchev" and discounts of up to 15%, because not every owner will want to take risks and accept offers from the state to move anywhere.
Rising construction costs and new prospects for long-term buildings
The State Statistics Service of Ukraine reports that since the beginning of the year, the average cost of construction in the country has increased by 4%. In different industries, the increase in prices was felt in different ways:
- +2,4% for the construction of transport infrastructure and other engineering facilities;
- +5,6% for the construction of residential real estate;
- +7,1% for the construction of industrial facilities.
Despite this, not only significant shifts in the old housing stock are planned, but also changes in the fate of long-term buildings, i.e., such residential complexes, construction work on which is proceeding very slowly or has been suspended indefinitely. They will join the ranks of social housing. This practice is somewhat unusual for Ukraine, as more than 98% of real estate is private property. Olena Shulyak emphasizes that we need to adopt the best traditions of our European neighbors and develop a fund of social housing, which will be owned by the state or individual cities. Such housing will be available for rent at a more moderate price, as it is aimed at socially vulnerable groups of the population. The beginnings of a new housing fund can already be seen in the draft law "On the basic principles of housing policy".
Currently, affordable social housing makes up only 1,5% of all residential real estate. It is planned to be supplemented with Wojciechovsky longhouses, "Kyiv city building”, “Arcades”, etc. The profit from the rent will be directed to the construction of new housing complexes. The pilot project of social rent is already operating in the Lviv Region. It is also noted that in some cases it will not be just about temporary renting of housing, but about lease with right of redemption.
