Ukraine wants to introduce a tool to protect property buyers: how will it work?

The launch of a new tool to protect real estate investors could be an important step towards market transparency and increased trust in developers. Find out how the mechanism will work and what other guarantees home buyers will receive

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In Ukraine, according to data, only 15% of housing projects started in 2022 were commissioned on time, and a third did not resume construction at all. Against this backdrop, buyers are increasingly demanding transparent and secure mechanisms for investing in primary housing. One such tool could be open escrow accounts. This was announced by Olena Shulyak, Chair of the Verkhovna Rada Committee on Organisation of State Power, Local Self-Government, Regional Development and Urban Planning, and Chair of the Servant of the People party, according to RBC-Ukraine.

What is being proposed?

Shulyak said that the introduction of trust construction accounts — escrow accounts — is being discussed at the state level. These are special bank accounts into which the buyer deposits money for an apartment, but the funds are not immediately transferred to the developer. The funds are only released after specific stages of construction have been completed. This way, the investor's money is protected, and the use of funds is strictly targeted.

Today, project financing is virtually unavailable to most developers. According to NBU standards, development companies are classified as risky or even ‘default,’ so banks are reluctant to issue construction loans. As a result, a significant portion of projects are frozen, and buyers risk losing their investments. Escrow accounts and the creation of a guarantee fund can change the situation by ensuring stable financing and investor confidence.

Important to understand! Even with the introduction of escrow accounts, property insurance will help maintain confidence in the future. The policy covers risks associated with damage or loss of property and becomes a reliable addition to state guarantees.

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How will the mechanism work?

As Shulyak explains, the escrow mechanism should work in conjunction with bank lending. Banks will be able to lend to construction projects without fear of losing funds, as financing will be controlled and transparent. For buyers, this will be an additional guarantee that the residential complex will be completed and that their money will not disappear along with an unscrupulous developer.

The new model is a continuation of the Mortgage Lending Development Strategy adopted by the Financial Stability Council in the summer of 2025. The document provides for mechanisms to control financing and the possibility of replacing the developer if they fail to meet their obligations. In addition, Ukraine already has a roadmap from the World Bank and the support of the NBU.

The first step will be to launch an escrow for mortgage agreements. This will allow banks to lend more actively to the primary market without fear for their investments. The next steps are pilot projects with project financing and the full operation of the guarantee fund. According to Shulyak, a meeting with developers is also being prepared to discuss the experimental implementation procedure in order to test the model in real conditions.

For complete protection of your new home, you can now take advantage of property insurance from Visit Ukraine, which will provide reliable protection in any situation.

Reminder! In 2025, Ukrainians paid 22% more property tax than last year. Find out who became the leader in payments, how to check your charges and use the online calculator.

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