Overview
The Cabinet of Ministers of Ukraine is preparing a legislative reform that could radically transform the real estate market.
According to the proposal, property owners will no longer be able to sell or rent real estate independently, even if the buyer or tenant is a relative. All transactions would have to involve a registered and qualified intermediary.
The initiative, led by Prime Minister Yulia Svyrydenko, instructs the State Property Fund, Ministry of Economy, Ministry of Finance, Ministry of Justice, and Ministry of Development to develop new market regulations.
Why the Reform Is Needed
Ukraine’s real estate services market remains largely unregulated, despite existing laws that prohibit unregistered brokerage activity. Thousands of intermediaries operate informally, creating conditions for fraud, inflated commissions, and opaque deals.
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Excessive commissions: Some agents charge as much as one month’s rent or more.
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Unfair practices: Many demand payment even when the client finds the property independently.
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Low accountability: Lack of registration and oversight leads to unqualified service providers.
Officials argue that these factors undermine consumer confidence and prevent the development of a professional, transparent real estate industry.
Planned Government Measures
The upcoming draft law aims to introduce a comprehensive regulatory framework with four main pillars:
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Mandatory registration of realtors in a national database.
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Qualification standards and certification for all intermediaries.
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Consumer protection mechanisms to prevent fraud and overpricing.
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Transparent commission policies, requiring clear justification of service fees.
The Ministry of Economy emphasized that the reform will standardize practices, ensure fairer competition, and improve service quality for buyers, sellers, landlords, and tenants alike.
Key Controversy: The Ban on Private Deals
One of the most debated elements of the reform is the potential ban on private real estate transactions.
If adopted, the law would require every deal — even between family members — to go through a licensed intermediary.
Supporters say this will protect citizens from fraudulent transactions and create a professionalized real estate sector.
However, critics warn that such measures could violate constitutional property rights, as they restrict an owner’s freedom to manage their assets independently.
Legal experts also note that this could increase bureaucratic and financial burdens, forcing citizens to pay additional commissions even for simple, trust-based deals.
Economic and Social Impact
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Higher costs for citizens: Mandatory intermediary participation may increase overall transaction expenses.
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Budgetary implications: Establishing a new control and licensing system will require additional state funding.
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Reduced accessibility: Rising costs could make renting or buying property less affordable for lower-income households.
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Professionalization of the market: On the positive side, the reform could help eliminate unqualified brokers and build a more transparent and accountable system.
Expert Opinion
Industry experts acknowledge the need for modernization but call for balanced regulation.
They suggest implementing voluntary certification and public registries rather than mandatory mediation for every transaction.
“Regulating commissions and ensuring professional standards are welcome steps,” analysts say. “But forcing all deals through intermediaries risks creating new barriers instead of removing old ones.”
Outlook
The government plans to finalize the draft bill by early 2026, after consultations with real estate associations and legal experts.
If approved, the reform would mark the most comprehensive change to Ukraine’s housing market in decades, shaping how citizens buy, sell, and rent property for years to come.
Whether it will bring greater transparency or new restrictions will depend on the balance struck between consumer protection and property freedom.
