Developers sell future apartments multiple times and hand over housing without documentation.
Forty-two residential complexes are under construction or already completed in various districts of the capital, all linked to a company called Ukogroup. Moscow authorities claim that the properties built by developers from this group are mostly illegal, and that residents of the already-built high-rise buildings have no title to their apartments.
"These are 42 large-scale projects. Some have some documents, others have none at all. In some, documents have been received for one section, a seventh section is already planned, and three and a half have been built. I'm expecting another collapsed, crumbling pyramid. No one knows how much real estate in these buildings has been sold, how many times these apartments have been sold," explains Pavlo Ryabikin, Deputy Head of the Kyiv City State Administration for Construction, adding that a single apartment can be sold multiple times.
Buyers often don't even bother to check for title deeds for their homes. After receiving their apartment, they simply move in without any proof of ownership. According to Ryabikin, this situation has been going on for several years in some already-built properties. Meanwhile, the developers don't hide the lack of title deeds. Kyiv City State Administration employees sent to the offices of the companies selling apartments in these residential complexes, posing as ordinary buyers, were told they wouldn't receive title deeds. "They ask point-blank: do you need an apartment or title deeds? And there are people who only need an apartment," Ryabikin explains, sharing the results of his "inspections."
According to him, the main sign of construction scams is the obviously reduced price: a square meter in the future building is being offered for 9-13 hryvnias, while the average market price is around 12-15 hryvnias. However, this time, buyers tempted by the cheap housing are unlikely to receive government support, as was the case with Elita Center.
"There will never be a resolution like the one achieved by Elita Center. People will be held accountable and will be held accountable, becoming victims of their own greed," Ryabikin notes. However, he promises that the authorities will make efforts to allow the completion of those projects that do not violate safety regulations. This may require auctioning off unfinished buildings and finding new developers.
According to Ryabikin, the current situation is partly due to the interests of law enforcement agencies, while the prosecutor's office simply provided cover for the violators. Authorities are preparing civil lawsuits against 18 individuals to halt construction and recognize the city community's ownership of the land.
List of proposed City Group/UkoGroup objects:
Residential complex "Zatishny" (Rudanskogo st., 3-a)
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