The Institute for the Development of the Real Estate Market of Ukraine Plektan initiates discussions on reforms aimed at revitalizing the economy, supporting businesses, and stabilizing the real estate market. These proposals will be considered within the framework of the Ukrainian Business Platform with the participation of the entrepreneurial community and experts.

Join the discussions 👉 https://plektan.org/news/advocacy-17-03-2025

➡️ The necessity of reforming the real estate market

After the war, the real estate market in Ukraine is undergoing significant changes: destruction of residential and commercial properties, relocation of businesses, the need for infrastructure restoration, and instability in the legislative framework require a clear strategy. The main tasks of the reforms should be:

▪️Development of clear market operating rules: transparent conditions for developers, investors, and buyers.

▪️Stimulating investments: mechanisms for financial support and attracting international capital for construction and reconstruction.

▪️Protection of property rights: guarantees of transaction safety through monitoring compliance with legislation and implementing electronic registers.

▪️Price regulation: prevention of speculation and formation of transparent pricing for housing and rentals.

➡️ The real estate market is a strategic sector that directly impacts the economic well-being of the country. Without reforms, its potential will remain unrealized.

➡️ Key initiatives for reforming the business environment and the real estate market:

1. Abolition of the presumption of business guilt: government bodies should prove violations, rather than assume every entrepreneur or developer is a potential lawbreaker.

2. Balanced relationships between the authorities and businesses: authorities should not only control but also create conditions for development — from simplifying permitting procedures to supporting construction projects.

3. Transparent KPIs for government bodies: the effectiveness of institutions should be evaluated based on specific indicators — for instance, the speed of issuing construction permits or the amount of investment attracted to real estate.

4. Justification of state maintenance costs: businesses that pay taxes should know how these funds contribute to the development of the real estate market and demand their efficiency.

➡️ Why are reforms necessary?

Small and micro businesses account for 99.9% of enterprises in Ukraine, providing 64% of added value and 81.5% of jobs. The war struck hard: many companies ceased operations or relocated. The real estate market has suffered just as much:

▪️Over 20% of the housing stock has been destroyed.

▪️Commercial real estate needs restoration.

▪️The lack of transparent financing mechanisms is hindering the construction industry.

➡️ Ukrainian entrepreneurs and real estate market participants advocate for reforms that ensure economic recovery and sector development.

➡️ The mission of the Institute for the Development of the Real Estate Market of Ukraine Plektan

The Institute proposes a roadmap for the development of the real estate market, which includes:

▪️A program for the reconstruction of residential and commercial properties.

▪️Legislative initiatives to stimulate investments.

▪️Optimization of registration procedures and issuance of permits.

▪️Increasing the transparency of transactions and protecting the rights of owners.

➡️ International experience of post-war recovery

Examples from other countries show that deregulation and transparency contribute to economic growth:

▪️Germany (after World War II): tax incentives and simplification of regulations revitalized the real estate market.

▪️South Korea (1950s): support for small businesses and KPIs for the authorities stimulated the construction sector.

▪️Bosnia and Herzegovina (1990s): grants and deregulation helped restore the housing stock.