Kyiv’s off-plan apartments can outperform deposits or bonds. Yet between 2018–2025, thousands of buyers hit frozen sites, criminal probes against management, and years of waiting for keys. Here’s a Forbes-style, plain-English guide: facts, lessons, and a practical checklist to vet any developer.
1) Key Cases: What Went Wrong 🧩
Arkada Bank (2018–2025)
In August 2020, the National Bank of Ukraine declared Arkada insolvent; on July 31, 2024, the Deposit Guarantee Fund completed liquidation. In 2024–2025, prosecutors reported suspicions/court referrals in episodes totaling UAH 480m and UAH 110m—treat these as allegations according to law-enforcement statements, not final verdicts.
Ukrbud → Kyivmiskbud (since 2019)
The city assigned Kyivmiskbud to complete 18 Ukrbud projects. Some were commissioned, others remain problematic—progress is uneven.
Kyivmiskbud (2024–2025)
Kyiv City Council approved ~UAH 2.56bn recapitalization via an additional share issue; in July 2025 shareholders confirmed the follow-on. This is intended to restart stalled work, but implementation is gradual.
Voitsehovskyi (Illegal Builds)
After years of investigations, reports in March 2025 mentioned the figure’s extradition; law enforcement has cited dozens of sites lacking full permitting—a high-risk category for buyers.
Bottom line: across every “disaster” story you’ll find the same trio—weak investor due diligence + opaque financing + gaps in oversight.
2) New Rules: What Law No. 2518-IX Changed 🛡️
Since October 10, 2022, Law No. 2518-IX on guaranteeing rights to future real estate has been in force. It introduced a Special Property Right (SPR)—a separate title to a future unit/parking place that must be state-registered. Without registered SPR, pre-sales of future units are unlawful.
In plain terms for buyers:
🔍 Visibility: your future unit/section should appear in the state rights register.
🧾 Discipline: clearer disclosure and contract requirements.
⚙️ Integration with e-Construction (ЄДЕССБ): building permits, statuses, and IDs can be checked online.
3) The Forbes 15-Minute Due-Diligence Checklist ✅
Land & zoning
Get the land extract and cadastral data; confirm multi-family use and no liens/mortgages (rights extracts available via Diia).
e-Construction (ЄДЕССБ): permits + notices + consequence class (СС2/СС3)
Search the Construction Register by address/ID; verify the permit, client, and general contractor. If the permit is “fresh” but the pit is two years old—red flag.
SPR (Special Property Right)
Ensure SPR is registered for your section/phase, and your contract lists the unit’s specs clearly.
Funding mechanics
Ask for the financing scheme: fund of financing construction / civil contract for a future unit / escrow, etc. Avoid “creative” instruments (promissory notes, pseudo-targeted contributions).
3–5-year track record
Look for commissioning certificates of delivered buildings—not renders. Compare promised vs. actual delivery dates.
Market price ≠ gift
Benchmark against LUN/DOM.RIA. A deep discount demands a reason. Cheap ≠ safe.
Courts & debts
Search for lawsuits, enforcement actions, tax liens against the developer/project.
War-time technical risks
Shelter availability, backup power, cash-flow planning under air-raid disruptions, insurance. (Public communications and e-Construction updates provide useful cues.)
4) Where Money Burns—and How to Avoid It 🔥
Early pit (highest risk)
Lowest entry price; − Maximum regulatory/technical risk.
What to do: buy only with registered SPR, confirmed funding, and transparent cash-flow metrics.
Frame/facade stage (medium risk)
More visible progress; − Working-capital gaps cause pauses.
What to do: demand a construction/payment schedule; monitor e-Construction monthly.
Post-commissioning (lowest risk)
Certificate of readiness; − Highest price, but few surprises.
5) If Your Project Is Stuck — a 30-Day Action Plan 🧭
Paper trail first: gather your contract, payment slips, correspondence.
Legal position: assess your claim/SPR and the priority of recovery.
e-Construction monitoring: log status changes, permit extensions, DIAM decisions.
Investor committee: coordinate formal requests to the developer/city; explore co-financing paths to completion.
Mediation/litigation: choose a route (demand → claim/class action); prepare a completion P&L for talks with the city/contractor.
Plan B: consider selling the claim/SPR or bringing in a new developer—but only after a full document audit.
6) Five Myths About Kyiv New-Builds 🧠
“State-owned = guaranteed” — Not necessarily. Track capitalization, cash shortfalls, shareholder decisions, and actual build tempo.
“Bank partner = risk-free” — Arkada showed otherwise. Check registers, not logos.
“Low price = promo” — Often a liquidity alarm. Verify market and paperwork.
“An illegal build will be legalized anyway” — Don’t count on it. Without full permits, expect years lost.
“If it’s frozen, the city will finish it” — Sometimes, but slowly and not always under initial terms.
7) Quick Tools for Daily Checks 🔗
e-Construction Register (ЄДЕССБ): permits/statuses/object ID.
e-Construction Portal (home): map, analytics, DIAM updates.
Legacy permit archive (pre-July 6, 2020): historical docs.
Diia: extracts on property rights, mortgages, encumbrances.
Law No. 2518-IX: legal base for SPR and future-unit sales.
8) Market Pulse: Read Before You Sign 📈
Run a 30-minute pre-signing screen:
(a) Price/offer dynamics in your area (LUN/DOM.RIA) → spot anomalies.
(b) City-wide commissioning volume → proxies supply chain/contractor readiness.
(c) Price vs. build stage: an unjustified discount at frame stage = loud alarm.
9) TL;DR for Investors 🧾✨
Buy only where SPR is registered and e-Construction docs are complete.
Verify the funding scheme and 3–5-year delivery history—don’t trust renders.
Be wary of “too good” pricing—cheap rarely equals safe.
State/city developers still require due diligence—watch recapitalizations and actual on-site tempo.
If stuck, document → organize → execute the 30-day plan above.
This article is informational and not legal advice. Consult a qualified lawyer before committing funds.