The law consolidates the valuation of land and buildings into a single system to simplify transactions
The Verkhovna Rada has passed Law No. 4958-IX, which updates the property valuation system in line with international and European standards. The reform aims to simplify real estate transactions, reduce transaction costs, and increase investor confidence in valuation results. This is reported by the portal PromPolitInform, citing information from the Verkhovna Rada.
The adopted document replaces outdated legislation that had been in effect since 2001 with new rules adapted to modern economic realities. According to Oleksii Movchan, Deputy Chairman of the Committee on Economic Development, the key task was to bring Ukrainian requirements into line with the practices of international institutions such as the International Valuation Standards Council (IVSC) and the European Group of Valuers’ Associations (TEGoVA).
Integration of international standards
The new rules mandate the use of international approaches to determine asset value. This is necessary to create a transparent investment environment where the findings of Ukrainian appraisers are clear and acceptable to partners from the US, Japan, Australia, and European Union member states. This step is expected to facilitate better capital inflow into the Ukrainian economy.
Valuation of real estate as a single object
An important change is the shift away from separate regulation for the value of buildings and the land plots they occupy. Previously, such objects were often assessed by different specialists, creating difficulties during the alienation or pledging of property. Legislation now requires buildings and land to be considered as a single unit, with data reflected in one report, which will reduce unnecessary transaction costs for market participants.
Impact on citizens and the market
For ordinary citizens engaged in buying, selling, or inheritance, no radical changes in real estate prices are expected, as the reform is aimed at streamlining regulatory standards. At the same time, the law limits opportunities for abuse and price manipulation through stricter professional requirements. For the banking sector, this means higher trust in valuation reports, which is critical for lending.
Market access and damage assessment
The law opens the way for mutual market access for appraisers between Ukraine and other countries, provided the principle of reciprocity is observed. Separately, the document regulates the assessment of property damaged during the full-scale war, where international standards are complemented by specific Ukrainian rules. Mandatory state registration of reports and reviews is being introduced for state and communal property, which should make the management of public assets more transparent.
Photo: Verkhovna Rada
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