The minimum size of the guaranteed share of the construction of objects to be built in the future will be 10% of the total area for Kyiv, Dnipro, Lviv, Odesa and Kharkiv, 5% - for all other settlements of the country. In accordance with the legislation, this share will be pledged by the state, that is, in fact, it will be pledged until the object is fully commissioned.

The corresponding decision in pursuance of the Law of Ukraine "On Guaranteeing Property Rights to Real Estate Objects to be Constructed in the Future" was approved by the Cabinet of Ministers at a meeting on January 3, 2023.

"A balanced and carefully calculated decision has been made. Which, firstly, preserves the existing incentives for the construction industry, that is very important given the needs of the country's recovery. Secondly, it will motivate the developer to complete construction projects in order to remove the burden and make a profit. Thirdly, it provides sufficient guarantees for the completion of construction by third parties as a result of the occurrence of circumstances specified by law.

This decision is also important in view of the launch of the mortgage lending program eOselia (eHousing) in the primary real estate market. After all, for banks to determine the riskiness of a mortgage transaction, an unfinished construction object must be entered in the state register with the determination of the absence of encumbrances on the guarantee share," said First Deputy Minister of Economy of Ukraine Denys Kudin.

Background information 

According to the Law of Ukraine "On Guaranteeing Real Property Rights to Real Estate Objects to be Constructed in the Future", the guarantee share of the construction of a real estate object is determined for each divisible object under construction. Proprietary rights to the guarantee share are pledged before the commissioning of the completed construction object ( stage/launch complex) in order to guarantee the completion of the relevant object by other persons (including as a result of bankruptcy, financial insolvency of the customer or developer of the construction).

Future real estate objects, which are included in the guarantee share, must be free from property rights of other persons (with certain exceptions). Encumbrance of property rights to future real estate objects included in the guarantee share is terminated simultaneously with the putting into operation of the completed construction object.

The eOselia program was launched in October 2022. At the first stage, a mortgage loan at 3% can be obtained by the military, law enforcement officers, pedagogical and medical workers, scientists.