A draft resolution on establishing the minimum size of the guarantee share for real estate construction projects has been posted on the Ministry of Economy’s website. The document proposes setting the minimum guarantee share for real estate construction as a percentage of the total area of planned facilities within a single unfinished construction project (phase/initial complex). The draft’s authors have specified the following guarantee shares:
- for Kyiv, Dnipro, Lviv, Odesa, and Kharkiv—10% of the area;
- for other settlements—5%.
The Ministry of Economy developed this draft regulation in accordance with the provisions of the law on guaranteeing rights to real estate properties to be built in the future. The government believes that the introduction of a guaranteed share is necessitated by the need to halt the negative trend of completing real estate projects at the expense of individuals—the future owners.
Through this initiative, the authorities hope to help reduce the number of so-called “long-term construction projects.” Additionally, the investment scheme during the initial construction phase is intended to ensure that unforeseen costs are covered in the event of force majeure circumstances during the construction of the property.