July 21, 2021
As well as a number of experts and representatives of the professional community, the RIEL Real Estate Corporation specialists analysed the consequences that the adoption of a bill No. 5600 “On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine Concerning Balancing Budget Revenues” will inevitably result in.
It is quite obvious that in case of the final adoption of the bill by the Verkhovna Rada, one should expect an increase in the price of residential property. Ordinary Ukrainians will be the first to suffer from this – both those who buy property on the primary market and those who are considering the “secondary housing”. Because they will be saddled with the tax burden increasing from 5% (now) to 18%.
The forecasts were confirmed by the president of RIEL Real Estate Corporation Rostyslav Melnyk, “The construction community expects investment in residential property to be cut in half. Therefore, the volume of construction and related industries may be halved. The purchasing power of consumers can be reduced 10-fold. Thus, one can really expect the bankruptcy of most of the construction companies in the Ukrainian market”.
RIEL Real Estate Corporation joins the appeal of colleagues from the Confederation of Builders of Ukraine and the European Construction Industry Federation to officials, people's deputies and the President of Ukraine: this bill cannot be adopted as it is.
“We expect to attract the professional community and experts to discuss and make appropriate changes to this document,” they say in the RIEL Real Estate Corporation.
