The Russian full-scale invasion inflicted unprecedented damage on Ukraine’s housing stock. Hundreds of thousands of homes have been damaged or destroyed, and millions of Ukrainians have lost their permanent residences, becoming internally displaced persons (IDPs). As the war enters its fourth year, reconstruction of housing has become one of the most urgent priorities — not only socially but strategically, for stabilising communities, restoring livelihoods and enabling return. In response to this crisis, multiple stakeholders — international financial institutions, the Government of Ukraine, regional authorities, and private and civil society actors — have mobilised a diverse set of programs aimed at delivering housing solutions. These include large-scale investment initiatives, state compensation mechanisms, municipal developments, and innovative mixed models with private partners. Below is an overview of the main programs and projects shaping the housing recovery landscape in Ukraine in 2025–2026, prepared by URE Club for Property Forum.
International financial institutions: EIB and EBRD at the forefront
Among international institutions supporting Ukraine’s recovery, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) play particularly visible roles in housing and social infrastructure funding.
The EIB — the long-term lending arm of the European Union — has committed significant resources to Ukraine’s recovery through multiple framework programs and targeted social infrastructure initiatives.
In August 2025, the EIB approved a €200 million financing framework specifically for social and affordable housing reconstruction in Ukraine. This financing, part of a larger €400 million housing support structure, is designed to facilitate the construction of publicly owned affordable and energy-efficient rental housing. Funds will be provided as sub-loans or subventions to selected municipalities — especially those affected by the war or hosting large numbers of IDPs — alongside investment grants from central authorities. The program is accompanied by intensive policy advisory support to help shape the institutional framework necessary for a sustainable social housing system aligned with EU and EIB standards.
In addition, under the broader Ukraine Recovery Programme, the EIB provided €55 million in EU guarantee-backed financing in early 2025 for the reconstruction of critical social infrastructure, including social housing, schools, healthcare facilities, and water and waste systems in over 150 communities across the country. This support is part of a comprehensive recovery financing mechanism designed to rebuild essential services and improve living conditions for millions of residents, including displaced families. Complementing these larger programs, the EIB also announced targeted funding rounds under the Ukraine Recovery Program III, allocating €100 million in priority financing for community projects — including housing repair, reconstruction, and associated public services. Examples include major renovation of multi-apartment buildings and improvements in residential complexes in the Kyiv region.
Beyond direct housing investment, the EIB’s broader recovery portfolio in Ukraine — part of the EU-led Ukraine Facility — has committed over €2 billion in loans and guarantees across energy, transport, water and sanitation, with housing and social infrastructure as essential components.
The EBRD has also oriented its support towards affordable housing solutions, partnering with the European Commission and private developers to foster scalable housing models.
In late 2025, the EBRD signed a €100 million loan facility to support the development of a scalable, affordable housing platform in Ukraine, with the aim of delivering safe, sustainable housing for IDPs and other vulnerable groups. This initiative is being implemented in partnership with private actors — notably the Hansen Ukrainian Mission (HUM) and developer and philanthropist Dell Loy Hansen — combining affordable rental and rent-to-own models that enhance long-term housing security and economic integration.
The first phase of this initiative is expected to deliver about 1,800 affordable homes in the Kyiv region by 2029, underpinned by partial first-loss risk coverage from the European Union (through the Ukraine Investment Framework). The financing package also includes donor-funded technical cooperation, supporting social inclusion, human capital development through apprenticeships targeted at IDPs, and engagement with policy reforms that promote scalable private-sector housing models.
Earlier in 2025, the EBRD also weighed a senior secured loan facility of up to €100 million for the Hansen Ladder to Prosperity platform, which in its initial phase would fund EDGE-certified affordable rental housing projects in the Kyiv region, delivering nearly 200 units in phase 1 and scaling to over 1,800 units at full build-out.
Collectively, these institutional efforts by the EIB and EBRD signal a deepening engagement with housing as a central pillar of Ukraine’s recovery, blending public sector financing with private sector delivery and emphasising energy efficiency, social inclusion, and sustainability.
State-led housing support: Compensation and municipal initiatives
While international finance helps build new housing capacity and institutional frameworks, state-led programs — especially compensation mechanisms and municipal developments — continue to play a critical role in assisting individual families and local communities.
In 2025, the Ukrainian government continued and expanded the flagship «eVidnovlennya» residential compensation program, which provides financial support to citizens whose homes have been damaged or destroyed by the war. Under this mechanism, eligible households receive financial compensation through certificates that can be used either for repairing damaged dwellings or purchasing new homes to replace destroyed ones.
By late 2025, ministry data showed that more than 134,000 Ukrainian families had received compensation totalling over 45 billion UAH, with a significant share of beneficiaries being internally displaced persons. Thousands of these families have already used certificates to purchase new housing, including over 15,600 households that secured new dwellings within the year.
On 23 December 2025, the Government of Ukraine allocated 8.8 billion UAH from the state budget reserve to ensure the funding of housing compensation under the program, addressing over 6,000 cases of destroyed homes recorded as of that date.
These compensation instruments have become a fundamental part of the state’s commitment to uphold citizens’ housing rights in wartime and postwar reconstruction.
Municipal social housing projects
In parallel with these national compensation efforts, local governments are launching urban development projects for social and municipal housing that combine public planning, co-financing, and international support.
A high-profile example is the launch of the municipal housing quarter project for residents from Mariupol in Bila Tserkva, Kyiv region. This initiative — developed by the Ministry for Communities and Territories Development of Ukraine in cooperation with Mariupol and Bila Tserkva city authorities — embodies a modern municipal rental model that integrates not only affordable housing but also education, medical, and commercial infrastructure.
The project will consist of 16 residential buildings with around 1,000 apartments intended for over 3,000 internally displaced persons from Mariupol. It includes elements such as social rental housing at below-market rates and preferential mortgage options for eligible groups, including veterans, families of fallen soldiers, large families, and persons with disabilities. It is financed through a combination of state budget funds, local government contributions, and support from the European Union.
Beyond big finance: Private and NGO-led housing initiatives
While state and international finance form the backbone of large-scale housing programs, private and civil society initiatives contribute significantly both to filling gaps and innovating new delivery models.
One such example is the work of the HOUSING FOR IDP Foundation, a Ukrainian charity engaged in reconstructing abandoned or damaged buildings into multi-family housing for displaced families. The foundation has delivered several successful pilot projects in partnership with municipalities and donors, demonstrating that non-state actors can play catalytic roles alongside larger institutional programs.
These initiatives often leverage private capital, local expertise, and flexible procurement approaches to address specific community needs quickly and effectively. They also serve as proof-of-concepts that can be scaled, adopted, or integrated into mainstream reconstruction funding strategies.
As Ukraine continues its recovery, integrating and coordinating these streams of housing investment, policy frameworks, and local delivery mechanisms will be critical. Transparent processes, robust planning, and inclusive models that prioritise the needs of displaced, elderly, and low-income families will determine how effectively the nation rebuilds not just structures, but communities and lives.
