Difficulties in obtaining urban planning conditions and restrictions (UPC) were cited as the key problematic stage for launching projects by 35% of respondents, according to the Ukrainian Association of Developers (UAD) based on the results of the annual study “Administrative Barriers in Residential Construction.”
Urban planning conditions and restrictions (UPC) are a document outlining the basic parameters of future construction: permissible height, building density, setbacks from property lines, lot boundaries, requirements for landscaping, greening, and other planning restrictions. In effect, the UCRs determine exactly what can be designed on a specific land plot and within what parameters.
According to the study’s findings, among more than ten factors hindering the implementation of development projects, difficulties in obtaining UCRs ranked first (35% of respondents). Also among the top administrative barriers are difficulties in land and property relations (30%), instability of permits/cancellation by third parties (24%), and difficulties in obtaining technical specifications (22%).
“The General Urban Plan remains one of the most sensitive stages of construction. Formally, this should be a straightforward document—a digital extract from the master plan detailing the parameters of the future project. However, in practice, it is precisely at this stage that developers often encounter manual administrative procedures, leading to delays, unfounded conditions and rejections, and inconsistent interpretations of the same regulations. “It is critically important for the market to have a clear appeal mechanism,” noted Yevhen Favorov, chairman of the Ukrainian Association of Developers.
The problematic nature of the GUP procedure is confirmed not only by industry data but also by the findings of the National Agency for Corruption Prevention. In the draft Anti-Corruption Strategy for 2026–2030, the NACP noted that the existing procedure for obtaining initial data for design creates conditions for corrupt abuses and illegal construction, and that legislative approaches to issuing GUOs must be systematically reviewed.
Furthermore, in its report, the NACP also noted that while building permits are formally required to replicate the requirements of urban planning documentation at the local level regarding a specific land plot, in practice they are issued by local officials “on a case-by-case basis,” which creates opportunities for procedural delays, unjustified denials, or manipulation of the content of restrictions.
The UAD notes that the study’s findings also highlight a lack of trust in local-level decision-making. According to the survey, respondents’ level of trust in state authorities is relatively higher than in local authorities—5 out of 10 possible points for state authorities versus 3 points for local authorities. Overall, developers tend to view regulatory changes over the past four years positively: 16% believe the situation has definitely improved, 51%—somewhat improved, 11%—remained unchanged, 13% see it as having somewhat worsened, and only 9%—definitely worsened. At the same time, the reform of DAS to GIAG received one of the highest ratings among the indicators measured in the study—7.04 out of 10.
“GIAG has already proven its effectiveness as a reformed body of state architectural and construction control and supervision. It is important for the market that, where there is an unlawful refusal or blocking of the process at the local level, there exists a clear and independent mechanism for appeal and review. This is a matter of fair rules of the game,” added Favorov.
The Association emphasizes that local authorities must retain their role in shaping urban planning policy, approving documentation, and determining territorial development. At the same time, in cases where an authorized body unreasonably refuses to issue a building permit or fails to make a decision within the established timeframe, businesses need a tool to protect a lawful project.
“The industry demands the creation of an appeal mechanism for cases of unlawful refusals. There is no question here of taking away powers from communities. There must be a safeguard against inaction or abuse. If a project complies with legislation and urban planning documentation, it should not be blocked for months. For such cases, an independent and transparent appeal mechanism is needed,” Favorov emphasized.
Full digitization and automation of the permitting process are cited as a strategic solution for the sector. In its recommendations, the NACP also identified the automation of administrative decisions and the transformation of the analog permitting process into a digital one as one of the key tools for minimizing corruption risks. The Association emphasizes that since the development market is in greater need of reformed state oversight, the appeal mechanism through the State Agency for Urban Development (SAUD) could be a good interim solution until the full automation of the GOU. The UAD believes that reducing corruption risks in the housing allocation procedure, creating a clear appeal mechanism, and further digitizing procedures will facilitate the launch of new housing projects and, consequently, increase the supply of housing for those who need it—namely, military personnel, people with disabilities, and other categories eligible for purchase benefits.
CONSTRUCTION, corruption risks, DEVELOPERS, housing sector, MOU
On March 5, 2026, a closed VIP event entitled “Trust as Capital: Reputation that Works in Real Estate” was held in Kyiv at the Creator City residential complex, organized by CREATOR CITY, the development company Creator-Bud, and the DMNTR media group.
The event brought together leading representatives of the development market, investors, architects, building material manufacturers, and industry experts for an open discussion about one of the key values of the modern market: trust.
The main part of the evening was a panel discussion on reputation as a strategic asset, moderated by Dmytro Struk, development director at Creator-Bud. The discussion was attended by Yulia Dementieva, Product Director at Creator-Bud Kyiv, Igor Ilchyshen, founder of the investment and development company Arha Group, Yaroslav Korniyachenko, Founder and CEO of Vlasne Misto, Eduard Suprunov, Head of the B2B Department at LG Electronics Ukraine, Andriy Trukhan, CEO of Smart Development, Dmytro Karpilovskyi, full-time investor and co-founder of Ukraine Multifamily Club, Anna Iskierdo, architect, co-founder and creative director of AIMM, Serhii Datsiv, CEO of MIROPLAST LLC (WDS TM), and Oleksandr Muratov, CEO of Designloft and Shishka project.
The experts discussed reputation as a strategic asset for developers, which directly affects investment attractiveness, buyer confidence, and long-term brand value. Key topics included tools for restoring and strengthening customer trust, transparency of development processes as a factor in investment attractiveness, the role of architecture, construction quality, and service in brand formation, as well as practical case studies of companies that turn reputation into a competitive advantage.
The panel discussion was preceded by a press conference entitled “The media as a driver of trust: how the media shapes reputational capital in the real estate sector.” The moderator was Olena Koval, founder of the OK_PR communications agency. The discussion was attended by Vitaliy Borul, CEO of Credo Development, Yevgen Bokiy, commercial director of UDP, Oleksandr Stepanitsa, commercial director of HutJet, Oleksandr Koval, CEO of Martynov Real Estate, Roman Yavorsky, commercial director of IT-Enterprise, Oleg Nagorny, deputy director of the department of technical standards and services of Public Broadcasting, Kirill Vereshchagin, owner of Sharks Agency and marketing partner of Premier Development, and Lyudmila Chumak, executive director of Kreator-Bud.
The discussion focused on the role of the media in building trust in developers, the responsibility of journalism in covering the real estate market, and the importance of systematic communication between business and society. Participants emphasized that reputation is no longer shaped solely by the product—it is built through open communication, publicity, and transparency.
The event became a platform for professional dialogue between key players in the Ukrainian real estate market, the media, and investors. After the discussion, participants continued their communication in a networking and buffet format, discussing new opportunities for cooperation and future projects. Interviews with guests were also filmed, which the organizers plan to publish on their websites.
In today’s market conditions, trust is becoming one of the main assets of a developer, and its formation is the result of systematic work by businesses, architects, the media, and society.
Interfax-Ukraine is the information partner of the event.
Developers note a high demand for the eHouse program, but there are still not enough transactions to have a noticeable effect on the primary housing market, according to developers interviewed by Interfax-Ukraine.
“At present, the number of apartments purchased under the eHouse program in residential complexes under construction does not exceed 1%. For a more or less tangible impact of the state mortgage on the primary market, this figure should increase to at least 25-30% of the loans issued – up to 200-250 mortgages per month,” said Volodymyr Sementsov, co-founder and managing partner of INSPI Development.
Daria Bedia, Marketing Director of DIM Group, expressed a similar opinion. According to her, while there are not enough transactions under the eOselya program in the primary market, at the same time, installment offers from the developer are in demand.
“We do not believe in eHouse in particular because of the insufficient volumes in the primary market: when at least 300 loans out of 1,000 per month are issued in the primary market, it will feel a certain effect. However, we have hopes for compensation certificates for destroyed housing. They can give an incentive to the market recovery next year,” the expert believes.
According to her, DIM has increased the number of financial instruments for buyers, including long-term installment programs for up to seven years, exchange rate fixing, and discounts. The company also offers individualized installment terms and discounts for military personnel, including installments in hryvnia without reference to the exchange rate and free white box finishing.
KAN Development also offers special conditions for purchasing housing in its projects, including long-term installment plans from the developer. The company noted a small number of transactions under the eOselya program, while the developer has already received the first requests for housing under the housing certificate program.
Demand for ready-to-move-in apartments in Ukraine’s primary real estate market is gradually growing, with their share in the sales structure of some developers reaching 50%, according to a survey of developers conducted by Interfax-Ukraine.
“Before the full-scale war, the share of renovated apartments from the developer was about a third of total sales. Now it is up to half of the transactions. The demand for owner-occupied apartments is growing. Firstly, it is cheaper than finishing the apartment yourself. Secondly, it is much faster. You can move into a new home immediately after the building is completed, while renovation work done by yourself takes at least several months to six months. For many people, this factor is critical,” said Anna Laevska, commercial director of Intergal-Bud.
According to her, Intergal-Bud offers buyers a finishing of the apartment (flooring, wallpaper for painting, interior doors, electrical wiring and electrical fittings, plumbing) with designer renovation in three styles, as well as installation of furniture and kitchen.
Ms. Laevskaya noted that over the past year and a half, the company has revised the prices for the renovation service several times. Today, the cost of designer renovation is $300 per square meter, which is $100 lower than before the full-scale war. A furnished repair from the developer will cost $600/sq. m.
“We understand that renovating an apartment in a new building is a big expense. In the context of exchange rate fluctuations, when everything around us is getting more expensive, a democratic price offer from the developer is a step towards Ukrainians who want to improve their living conditions. We have no plans to revise the cost of repairs, but we understand that further developments will depend on the prices of materials,” the expert said.
According to DIM Group, the share of ready-made renovated apartments in the structure of demand in the primary market is 45%.
“The advantages of a renovated apartment from a developer include maximum transparency and accountability. The buyer delegates to the developer the supervision of the order fulfillment and already accepts a fully finished product at the stage of receiving the keys,” said Daria Bedia, DIM’s Marketing Director.
The developer offers four types of finishes in its projects: basic renovation at a cost of $650/sq. m, kitchen with appliances – an additional $50/sq. m to the cost of basic renovation, cabinet furniture – “plus” $30/sq. m, upholstered and separate furniture – “plus” $20/sq. m. DIM engaged Anthracite design bureau to develop the renovation projects.
“We set ourselves an ambitious task: to overcome the prejudice that a renovated apartment in a new building is always about a typical renovation with budget materials, the same colors and style. Our partner has developed a whole line of adaptive design projects that differ in style, color scheme, content, and price,” Bedia explained.
Meanwhile, apartments with ready-made repairs are not in demand in business-class residential projects and are more relevant in comfort and economy class, according to City One Development.
“Based on many years of experience and analyzing customer requests, we can say that it is impractical for a developer to make ready-to-move-in apartments in the business segment. The vast majority of our clients choose apartments for themselves and want to choose and develop the design themselves. Renovated apartments are relevant in the economy and comfort classes. But this is no more than 5% of the total demand,” says Dmytro Novikov, Marketing Director of City One Development.
Among the disadvantages of finished apartments, Novikov mentioned the higher cost, longer terms of obtaining housing and mostly standard design solutions that do not take into account the individual request of the buyer.
According to him, the experience of sales of the first and second phases of Novopecherski Lypky showed that the most popular renovated apartments were one-bedroom apartments, while two- and three-bedroom apartments were sold less actively.
“So far, we have not received any requests for ready-made renovated apartments from the developer. Customers continue to be interested in finished apartments even at the final stage of construction, which means that the trends that emerged with the outbreak of the war continue to exist,” he summarized.
The transition to a regime of managed exchange rate flexibility has not yet affected housing prices in the primary market, but it may change the behavior of potential buyers, and the rise in the dollar in the future may affect construction costs, according to Ukrainian developers interviewed by Interfax-Ukraine.
“We do not expect any sharp price fluctuations in the primary market. Pegging to the current US dollar exchange rate is a standard practice among developers. That is, in case of a significant depreciation of the hryvnia against the dollar, prices for square meters in the national currency equivalent will indeed increase. However, we do not see any reasons for this at the moment,” Anna Laevska, Commercial Director of Intergal-Bud, told the agency.
According to her, in the short term, the cost per square meter will be mainly influenced by the dynamics of real demand and the cost of construction.
At the same time, the rise in the dollar may lead to higher prices for contractors’ services and construction materials, said Dmytro Novikov, marketing director of City One Development.
“At present, we do not see any prerequisites for a rapid rise in prices in the primary real estate market. Even if the dollar rises in value, there will be no significant changes in the primary market in the near future. But it may have an impact in the future: if the cost of construction materials, which are directly tied to the currency, rises, the cost of construction will certainly increase,” he said.
Daria Bedia, Marketing Director of DIM Group, expressed a similar opinion.
“The pricing policy in the primary market is always closely linked to exchange rate fluctuations, as a large percentage of contractor services and the cost of construction materials, for example, are tied to the US currency. If the exchange rate rises significantly, it will create an additional burden on the cost of construction, which will push the price up,” the expert said.
At the same time, the rhetoric about the “rise in prices” against the background of a flexible exchange rate is nothing more than a marketing ploy and an attempt to persuade buyers to buy, she noted.
“There will be no rapid growth in this case, taking into account the constraining factors,” Bedia believes.
In case of a dollar appreciation, developers will be able to slow down the growth of costs only with the help of previously purchased stock of building materials, said Irina Mikhaleva, marketing director of Alliance Novobud.
“We can say for sure that with the further growth of the dollar, the cost of primary materials will also increase, primarily in hryvnia equivalent. The cost of construction will also increase, as manufacturers and suppliers of services and building materials will raise prices. The only way to slow down the growth of costs may be the stocks of building materials that were purchased earlier and are now at the disposal of builders,” she said.
Ms. Mikhaleva noted that the market reaction can be predicted only if the dollar gradually rises, without sharp jumps.
For their part, KAN Development believes that even a sharp fluctuation in the exchange rate will have a minor impact on the housing market.
“Even a sharp fluctuation in the exchange rate, if it affects the cost of real estate, will not significantly affect the housing market. If the hryvnia drops by 10%, it will strengthen later. Government mortgage programs will not be suspended and will continue to be issued in hryvnia. As for new housing, developers will continue to adjust to the market price in dollars. So far, we do not see any factors that could sharply collapse the hryvnia,” the developer commented.
According to the Kovalska Group’s press office, the transition to exchange rate flexibility may have an indirect impact on demand and may slow down the pace of recovery in the real estate market amid a general decline in purchasing power.
“For example, buyers who have savings in another currency and are ready to buy today may postpone their purchase decisions until the exchange rate is “better”, and buyers who are considering purchasing under government and partner programs such as eOselya, preferential mortgages, etc. may go to the secondary market in search of cheaper housing due to “uncertainty”,” the developer noted.
Susanna Karakhanyan, Head of Sales at Greenville Group, also spoke about the likelihood of changing the behavior of potential buyers.
“For those who are now thinking about buying a home, a window of opportunity is opening to invest before the exchange rate gains speed and starts to grow after the commercial one. This situation is likely to accelerate investors who are ready to pay the full price immediately,” the expert told the agency.
In addition, the situation has become unpredictable for those who planned to take out a long installment plan to buy a home.
“While the NBU exchange rate was unchanged for more than a year, investors could clearly calculate their payments. Now the situation will be unpredictable. Therefore, developers will try to take control of the situation: for example, to fix the exchange rate for a certain period in order not to lose a buyer and demonstrate loyalty,” Karakhanyan said.
As reported, on October 3, the National Bank of Ukraine switched to a regime of managed exchange rate flexibility.
KYIV. Nov 9 (Interfax-Ukraine) – The State Architectural and Construction Inspectorate should create the service of the electronic cabinet of developers, the press service of Deputy Prime Minister of Ukraine, Regional Development, Construction, Housing and Utilities Economy Minister of Ukraine Hennadiy Zubko reported on Thursday.
“Today, the priority task for the inspectorate is to work out with the business a new concept of work through the introduction of an electronic cabinet of the developer with connecting all the necessary registers. Creating a new service will remove officials as much as possible from the licensing procedures,” Zubko said during an open discussion of the Regional Development, Construction, Housing and Utilities Economy Ministry and the inspectorate with representatives of construction industry and specialized associations.
According to Head of the State Architectural and Construction Inspectorate Oleksiy Kudriavtsev, the electronic cabinet of the developer will contain all the documentation about the construction project: from the moment of submitting the application for the start of preparatory work to commissioning. This should minimize the possibility of corruption risks between the developer and the inspectorate.
“Together with the government-public initiative “Together Against Corruption” we are considering the creation of electronic cabinets for builders, which means the maximum transition to online communication. There will be an electronic cabinet, let’s talk in it and everyone will see where the documents are, the deadline for consideration, the construction stage, and other things,” Kudriavtsev said.
He also said that the plans include connecting local authorities to the online platform for reviewing permits for the construction in the Transparent State Architectural and Construction Inspectorate launched in October.
Zubko said that despite the simplification of licensing procedures and the decentralization of the powers of the inspectorate, the problem of corruption remains.
“We have already begun to work together with the prosecutor’s office and the prosecutor general regarding abuses on the ground. There are already significant results in personnel matters, and we will continue this work,” the deputy prime minister said.
