The start of sales of new residential projects in Ukraine has been blocked for four months due to the inability to register property rights to them, Viktoria Volkovska, Director General of the Finance and Investment Management Association (FIMA), told Interfax-Ukraine.

The expert recalled that on October 10, 2022, the law on guaranteeing real rights to real estate objects that will be built in the future (No. 2518-IX) came into force. This law contains a rule according to which, in order to start construction and finance it, information about the future construction object and a certain guarantee share must be entered in the State Register of Property Rights.

In early January, the Cabinet of Ministers approved the minimum size of the guarantee share of the construction of facilities built in the future at the level of 10% of the total area for Kyiv, Dnipro, Lviv, Odesa and Kharkiv, and 5% for all other settlements of the country.

According to the legislation, the guarantee share will be encumbered by the state, that is, it will actually be pledged until the complete commissioning of the object.

The legislation provides for the interaction of the State Register of Property Rights with the Unified State Electronic System in the Sphere of Construction, information should be automatically reflected in the system.

"However, according to state registrars, it is still impossible to register property rights in the Register, which does not work at the beginning of February 2023," Volkovska said.

In her opinion, a month for the creation of the register, which is provided by legislators, is not enough in wartime conditions. That is why market representatives have repeatedly appealed to MPs to postpone in time the requirements for entering information into this register until the start of the full-fledged operation of the State Register of Rights to Real Estate and the establishment of its interaction with the Unified State Electronic System in the Sphere of Construction.

"Until the state creates this section of the Register and sets up its interaction with the electronic system, it is logical not to require registration in something that does not exist," Volkovska believes.