Mechanisms for Protecting Investors in Residential Construction Want to Be Changed

The National Securities and Stock Market Commission announced its support for the draft State Strategy for Housing Policy of Ukraine until 2033 and its implementation plan for 2026–2029. Concurrently, the Commission submitted several comments, primarily concerning the protection of investors in residential construction.

The Ministry of Communities and Territories Development developed the strategy in accordance with the Law "On the Basic Principles of Housing Policy," adopted by the Verkhovna Rada on 13 January 2026. This law introduced, for the first time in Ukraine, a system of strategic planning in the housing sector.

The Commission emphasised that the country still lacks a fully developed social housing fund, and affordable housing mechanisms remain underdeveloped. Construction financing largely depends on private individuals' money, while long-term and institutional investment is rare, primarily due to war risks and insufficient investor protection.

The strategy proposes creating transparent, secure, and inclusive systems for investing in residential construction. The Commission is prepared to update the control rules for construction financing funds, real estate transaction funds, and asset management companies.

The Commission is also ready to participate in establishing a financing mechanism for construction through escrow accounts. These special accounts hold buyers' money until the developer fulfils their obligations. The Commission proposes setting capital and ownership requirements for companies building housing and obliging developers to disclose information about their projects.

"Another proposal is to create a construction guarantee fund. It should protect individuals investing in housing: if construction ceases, the fund will help complete the project or return the invested money.

The Commission also aims to create conditions for banks, insurance companies, and pension funds to increase their investment in housing construction. To achieve this, clear rules for evaluating such projects and new financing instruments need to be developed," the Commission stated.

The regulator’s experts suggested considering the draft law "On Securitisation and Covered Bonds" (No. 15172 dated 13 April 2026), which has already been registered in the Verkhovna Rada. The Commission believes that the operational plan should specify the expected outcome of this initiative: not only the adoption of the relevant law but also the adoption of necessary regulatory acts by the NSSMC.

According to the regulator, this will enable the introduction of mechanisms for issuing covered bonds and asset securitisation, which will help attract long-term financing for residential construction, more effectively distribute risks among market participants, and stimulate the development of mortgage lending, thereby contributing to increased housing affordability for citizens.

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