The Ukrainian Association of Developers, which unites the largest construction companies, has reported that the industry is being systematically blocked by a number of politicians and “pseudo-activists.”
The official statement recalls that the aggressor has destroyed the homes of more than 1.5 million Ukrainian families, and that construction volumes have halved compared to pre-war levels. According to minimal estimates, it will take at least 25 years to provide housing for these families under current conditions. Creating conditions for the development of the construction industry and providing housing for Ukrainians should be one of the government’s priorities.
“However, the construction industry is not just deprived of support, it is under constant pressure and blocking. Today, some politicians and pseudo-activists, officials and judges are trying to take developers, who stand behind millions of Ukrainian families and hundreds of thousands of migrant workers, as economic hostages. They, along with some representatives of certain structures, are illegally blocking the work of an entire sector of the economy. In some cases, the authorities either indulge them or simply pretend that the problem does not exist,” the statement reads.
The Association conducted a study of the situation in 2017-2024, interviewed 13 out of 22 member companies, and analyzed 193 criminal proceedings. On average, there are five cases per facility, with 52% of cases involving violations by public officials, 84% of cases involving seizure of accounts and property, interrogations and searches. Only 17% of cases have been completed. At the same time, 74% of respondents reported that the provisions of the Criminal Code on limiting the time of pre-trial investigation and applying the statute of limitations for criminal prosecution for offenses are not being implemented. For example, the oldest episode in which a case was opened was 17 years old.
“After a year of construction, an official can cancel his own decision issued under the law under pressure from the street. Some law enforcement officials can open criminal proceedings only on the basis of a desire to invite businesses to “discuss a financial issue.” As a result, pseudo-activists and law enforcement officers make money, the economy loses, and citizens do not receive their housing,” the Ukrainian Association of Developers said in a statement.
The authors of the statement emphasize that the construction industry is under constant pressure and blocking. Even if they have all the permits and documents, builders have no guarantee that central or local authorities will not change the rules on the fly and block construction. As a result, developers go bankrupt, the economy loses billions, and people do not receive housing, developers emphasize.
The Association warns that further ignoring the problems of the industry by the state will lead to catastrophic consequences. The industry will come to a standstill, and housing prices will skyrocket, making it even more unaffordable for most citizens.
Ukraine’s largest construction companies are calling on the President, the Cabinet of Ministers and other authorities to intervene.
“We demand fair rules! Restore compliance with the law in the construction industry by all its participants! To stop the arbitrariness of pseudo-activists and law enforcement officers! Bring extortionists and blackmailers to justice! To consider the issue of cultural heritage exclusively in the legal field, and not under pressure from the street! Prohibit the application of laws and regulations retroactively! Stop rewriting the rules in the construction industry on the fly!” the statement reads.
If this is not done today, there will be no one to rebuild the country tomorrow, the Association of Developers summarizes.
Established in November 2023, the Ukrainian Association of Developers (UA Developers) unites the leaders of the domestic real estate market. Today, they are KAN Development, RIEL, Stolitsa Group, SAGA Development, Kovalska, Intergal-Bud, Perfect Group, DIM, TARYAN Group (Poznyakyzhytlobud), Association of Western Ukrainian Developers, ENSO, BudCapital, BUD Development, IB Alliance, Futura, Liko-Holding, GEOS, Citex Development, Ave New Development, Caspian Service, UDP and Consulting Development. Together, the Association members represent 92% of the primary real estate market in Kyiv and 24% of the Ukrainian market.
