Future real estate object (FEO): Overview, benefits, prospects and risks
14.03.2025
Kyiv, Ukraine
A future development property (FDP) is a property that is under construction and has not yet been put into operation. Investing in such properties is a popular practice in Ukraine, as it allows you to get housing or commercial premises at a lower price than ready-made options. In this article, we will take a closer look at what an ORE is, its advantages and risks, as well as the prospects for this market segment.
Legislative regulation of the MES in Ukraine
One of the key developments in the field of future real estate was the adoption of the Law of Ukraine No. 2518-IX ‘On Guaranteeing Real Property Rights to Real Estate Objects to be Constructed in the Future’. This law came into force on 10 October 2022 and laid down the legal framework for regulating investment in the MES.
Key provisions of the law:
Registration of each future real estate object in the State Register of Real Property Rights.
Provision of a special property right to the DOE, which allows the buyer to have legal confirmation of their investment.
Ensuring transparency of transactions in the primary real estate market, which reduces the risk of fraud.
This is an important step towards protecting investors and increasing trust in developers.
Advantages of investing in the Ministry of Education and Science
Low cost During the construction phase, apartments and commercial premises are sold at a lower price than after commissioning. This allows you to save a lot of money.
Flexible payment terms Developers often offer instalment plans or special financing terms, which makes the purchase more affordable.
Wide choice The investor can choose the best layout, location of the apartment in the building and even make adjustments to the future design.
Opportunity to make a profit After the construction is completed, the value of the property increases, which makes it possible to sell it at a higher price or lease it out profitably.
State-of-the-art construction technologies New buildings are constructed according to modern standards with the use of energy-efficient solutions, which reduces property maintenance costs.
Possible risks and disadvantages
Unfortunately, it is impossible to foresee all the risks, but developers are actively cooperating with insurance companies, banks and are under fairly strict control of the state and society. Therefore, delays in construction due to economic, technical and military actions may create some difficulties for developers, which will lead to a postponement of the completion date.
Outlook for the MES market in Ukraine
Growing demand Despite the economic challenges, property investment remains one of the most reliable ways to preserve capital.
Government support programmes such as the Mortgage Lending Programme and government initiatives are driving demand for new housing.
Infrastructure development The construction of new residential complexes is accompanied by the development of social infrastructure (schools, kindergartens, hospitals), which makes them attractive to buyers.
Conclusion.
The future of real estate is a promising area for investment, which allows you to get profitable housing or business premises. However, to minimise the risks, it is important to carefully check the developer and enter into contracts in accordance with the applicable law. A careful approach to the selection of a BRDP will help you make the right investment and maximise your benefits.
Legislative regulation of the MES in Ukraine
One of the key developments in the field of future real estate was the adoption of the Law of Ukraine No. 2518-IX ‘On Guaranteeing Real Property Rights to Real Estate Objects to be Constructed in the Future’. This law came into force on 10 October 2022 and laid down the legal framework for regulating investment in the MES.
Key provisions of the law:
Registration of each future real estate object in the State Register of Real Property Rights.
Provision of a special property right to the DOE, which allows the buyer to have legal confirmation of their investment.
Ensuring transparency of transactions in the primary real estate market, which reduces the risk of fraud.
This is an important step towards protecting investors and increasing trust in developers.
Advantages of investing in the Ministry of Education and Science
Low cost During the construction phase, apartments and commercial premises are sold at a lower price than after commissioning. This allows you to save a lot of money.
Flexible payment terms Developers often offer instalment plans or special financing terms, which makes the purchase more affordable.
Wide choice The investor can choose the best layout, location of the apartment in the building and even make adjustments to the future design.
Opportunity to make a profit After the construction is completed, the value of the property increases, which makes it possible to sell it at a higher price or lease it out profitably.
State-of-the-art construction technologies New buildings are constructed according to modern standards with the use of energy-efficient solutions, which reduces property maintenance costs.
Possible risks and disadvantages
Unfortunately, it is impossible to foresee all the risks, but developers are actively cooperating with insurance companies, banks and are under fairly strict control of the state and society. Therefore, delays in construction due to economic, technical and military actions may create some difficulties for developers, which will lead to a postponement of the completion date.
Outlook for the MES market in Ukraine
Growing demand Despite the economic challenges, property investment remains one of the most reliable ways to preserve capital.
Government support programmes such as the Mortgage Lending Programme and government initiatives are driving demand for new housing.
Infrastructure development The construction of new residential complexes is accompanied by the development of social infrastructure (schools, kindergartens, hospitals), which makes them attractive to buyers.
Conclusion.
The future of real estate is a promising area for investment, which allows you to get profitable housing or business premises. However, to minimise the risks, it is important to carefully check the developer and enter into contracts in accordance with the applicable law. A careful approach to the selection of a BRDP will help you make the right investment and maximise your benefits.
