Property valuation is being restructured to meet foreign standards and for foreign investors
3 July 2025 16:49
ANALYSIS FROM 
Parliamentarians have launched a real reform in the field of property valuation. And not just for the sake of it, but to create conditions for international business activities, attracting foreign investment to Ukraine and investment by Ukrainian business entities and citizens in investment objects abroad. That is why the Ukrainian assessment is planned to be brought in line with international standards, although not without some kinks. What will the changes consist of, analyzed
The draft law provides for a new version of the Law on Property Valuation and related laws(the Law of Ukraine “On Land Valuation“, “On the State Property Fund”, etc.), updating almost every provision. In fact, the new version is a complete rebranding, which includes
- transition of the valuation methodology to international standards instead of outdated national norms and recognition of foreign qualifications, which simplifies the recognition of appraisers’ certificates abroad
- combining the valuation of land plots and real estate into a single process, without division. This eliminates duplication and leads to a single report, saving resources and time;
- introduction of three main areas of valuation separately: real estate, movable property, business/intangible assets. Certification in the area of business/instruments is possible only if you have certificates in the other two areas;
- the possibility of self-employed activities of individual appraisers is established, but with enhanced control: inspections, disciplinary sanctions, requirements for reviewing reports;
- a state register of appraisal reports and reviews with digital accounting will be launched;
- an Evaluation Council will be established – an institution with broad discretionary powers over qualifications, review, and sanctions;
- a monopoly on educational training is envisaged: only the SPFU (or its center) will conduct exams and training.
However, the draft law is criticized for the possibility of expropriation of property “without a trial,” which is contrary to the Constitution. Too broad discretionary powers of state bodies, unclear deadlines for registration of reports, lack of clear procedures for the Evaluation Council and the SPFU Training Center.
There is a conflict of interest between the roles of the SPFU as a regulator and an executor of the evaluation process. In addition, it is proposed to set minimum and maximum limits for the value of a hundred square meters/hectare of agricultural land by region to avoid “space” values of the SPFU module.
Monopoly on certificates and rising cost of services
On the one hand, the transition to international standards (ISA) means a more transparent, reasonable assessment. The report will become more standardized, suitable for both the court and the investor. But reviews will become tougher. In other words, the valuation will be of higher quality, but more expensive and slower.
All valuation reports, reviews, and certificates will be recorded in a centralized registry. The customer will be able to check the appraiser in a few clicks. This should reduce the number of fake reports, increase transparency, and make it impossible to customize the appraisal.
At the same time, the SPFU will receive a monopoly on training, certification and control. This may lead to a decrease in competition and the emergence of “manual regulation.”
Land valuation will no longer be separated from real estate. This should simplify the procedure, especially for small businesses and notarized transactions.
But due to strict requirements, narrow specialization and review, the cost of reports will increase. This will be especially noticeable in the case of a complex or non-standard valuation.
For an average citizen or individual entrepreneur, the assessment will become too expensive. Budgetary institutions will also suffer (increased costs for tenders, land purchases, leases, etc.). But such costs are affordable for foreign investors, for whom, as real estate and land market experts emphasize, these changes are being adopted.
Existing appraisers are at a loss
Appraisers who are already working in the market are in a state of confusion, because if the amendments are adopted, they will have to undergo training and obtain new certificates again. The State Property Fund (SPFU) is given a sole controlling role: it trains appraisers, takes exams, issues certificates, monitors, punishes, and maintains a register of reports. Independent educational centers will lose the right to train specialists. A conflict of interest arises – a regulator and a market player in one person. Political or corrupt bias in decision-making is possible.
The appraiser will no longer be able to be a generalist. The certificate is issued only for one of three areas: real estate, movable property, business/intangible assets. To conduct a comprehensive valuation (e.g., business and property), you need 2-3 certificates, more training, and more expenses. The number of universal appraisers will decrease, which may lead to a shortage of specialists. It will be more difficult to work in regions where there is a shortage of personnel. To be more precise, the workload of narrowly specialized appraisers will increase in the regions,” shares his concerns with
[Kommersant] appraiser Sergey Filimovich shares his concerns with "Komersant Ukrainian".
Appraisers will leave the market
We can already predict that small specialists will leave the market, and only large players with access to the regulator will remain.
It will be difficult for individual appraisers to pass all the certification and maintain all the registers. This will be a serious blow to small businesses that will not be able to afford it, and many individual entrepreneurs will close again. Prices for services will become sky-high, appraisers emphasize.
There is another nuance: The Evaluation Council and the SPFU will receive vague powers to cancel reports, discipline, and appoint repeated inspections. This opens up the possibility of pressure on “inconvenient” appraisers or those who do not work “on call”. The customer will not be sure of the stability of the report, as it may be “withdrawn” in six months. High legal risks arise in case of litigation or transactions,” notes Sergiy Filimovich.
“Finally, the draft law has contradictions with the Constitution and other laws.
For example, it provides for the right of the controlling body to demand a forced assessment, and does not provide for clear procedures for appeals, repeated reports, and appeals.
Violations of property rights and the right to defense pave the way for abuses and court scandals.
Author – Alla Dunina
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