Bringing Order to Ukraine's Real Estate Market
Ukraine's parliament, the Verkhovna Rada, is drafting new legislation to regulate the country's real estate brokerage sector, which has operated for decades without clear rules. This marks the fourth attempt to regulate this field, following unsuccessful initiatives in 1999, the 2000s, and 2020. A working group under the parliamentary committee is developing a document aimed at establishing professional standards, protecting consumers, and legalizing the market without creating monopolies.
Estimates suggest between 45,000 and 80,000 real estate agents operate in Ukraine. The first legislative attempt to regulate the property market came in 1999. In the mid-2000s to early 2010s, the State Property Fund of Ukraine drafted a bill 'On Brokerage Activity in the Real Estate Sector.' On June 9, 2020, a group of MPs registered bill No. 3618 'On Real Estate Activity in Ukraine.' By February 2022, this bill was on the parliamentary agenda, but Russia's full-scale invasion halted legislative work.
A Fresh Start and Persistent Challenges
In early 2026, the head of the Verkhovna Rada Committee, Olena Shuliak, announced the creation of a working group to prepare legislative initiatives for the real estate services market. The catalyst for this new start was the adoption of bill No. 12377 'On the Basic Principles of Housing Policy.'
Olena Shuliak noted: 'Today in Ukraine, there are no clear standards for real estate agents' work, transparent requirements for contracts, or a clear structure for service costs.'
According to Ukraine's State Tax Service data for 2024, only about 900 people nationwide officially declared rental income. Olena Shuliak reported that the primary reason cited is high taxation levels. Owners renting out property pay approximately 23% of their income in taxes. Olena Haidamakha, a representative of the realtor community, emphasized: 'If the tax were at a level of up to 10%, people would be interested in paying it themselves. Instead, the current tax burden is significantly higher.'
The Association of Real Estate Specialists (Realtors) of Ukraine signed a memorandum of cooperation with the U.S. National Association of Realtors in 2002. During this collaboration, about 1,500 Ukrainian professionals received training through programs led by their American counterparts. Olena Haidamakha also noted: 'American colleagues conducted powerful training courses for our realtors.'
In the context of preparing the new bill, the realtor community has expressed concerns. Olena Haidamakha remarked: 'We support the idea of regulating the market. But it is important that the law is genuinely created together with the professional community, not just declaring such cooperation.'
Thus, the Verkhovna Rada continues its work on legislating the real estate services market, seeking to solve problems that have accumulated over many years. The property market remains without clear rules, but the new bill aims to change this situation by providing more transparent conditions for all participants.
The development of the new bill underscores the need for reform in a sector where the absence of clear standards and rules has led to low consumer trust. Given past failed attempts, it is crucial that the new document incorporates the experience of the professional community and international best practices, which could improve service quality. This legislative effort is part of broader post-war economic reforms aimed at strengthening property rights and attracting investment. Successful implementation of the law could positively impact Ukraine's real estate market by attracting more investors and improving conditions for both tenants and landlords.
In light of the ongoing efforts to regulate the real estate market, it is crucial to consider how recent changes in rental rules may impact landlords. As Ukraine tightens its rental regulations, discussions around potential tax cuts for property owners are gaining momentum. These developments could significantly influence the dynamics of the real estate sector. For more details on these evolving rental conditions, see our article on tightened rental rules and tax considerations.