In this article, you will find out who they are – the main Mavrodis of the Kyiv real estate market, writes Antikor.
New construction in Kyiv is rising faster than utility rates. It's no surprise. Demand for housing in the capital is enormous. And there are also many unscrupulous developers who collect money from investors and then disappear into thin air without completing construction. To avoid falling victim to the next scam, you need to know the "heroes" by sight. In this article, you'll learn who they are—the main Mavrodis of the Kyiv real estate market.
5th place – OK "ZhSK "Zhulyany"
During the construction phase, the Zhulyany residential complex attracted investors with its attractive price and convenient location—a 15-minute walk from the Ippodrom metro station. Furthermore, the windows were supposed to offer excellent views: the residential complex is located in a private sector, where nothing obstructs the view of Kyiv's vast expanses.
The first building was promised for completion by the end of 2015. But something went wrong. It turned out that the land allocated for development was considered a private plot. This meant that buildings no higher than two stories could be erected on this site, whereas the developer had planned to build nine- and sixteen-story buildings. That's where the magnificent view came from.
The land owner filed a lawsuit against the developer, stalling construction. After a series of hearings, the contract with the ZhSK Zhulyany housing cooperative was terminated, and the court returned the land plots to their owner. Ultimately, one of the buildings was completed, but never commissioned. Several families moved into the apartments themselves in 2018. They paid for utilities and completed renovations in the entryway. Now they live on a powder keg, as the court ruling could demolish the building at any moment.
Read also: A man stole the contents of parcels from Nova Poshta, but the crime was caught on video.
4th place. UK City Group LLC
Another problematic long-term construction project with a magnificent view is the Sovskie Prudy residential complex. The complex overlooks a picturesque lake. The nearest metro station (Demiivska) is a 15-minute walk away. The building is located far from the roadway. And the apartment prices are more than attractive—starting at 270,000 hryvnias.
However, as in the case of the Zhulyany residential complex, cheap cheese often comes with a bad odor. The area around Sovskie Stavki is a lucrative prospect for developers, but the problem is that it's completely unsuitable for high-rise construction. Quicksand, numerous springs, and a high groundwater level all pose a potential hazard to the building. In 2004, plans were made to build a nine-story building here, but ultimately, the project was abandoned.
But in 2012, UK City Group LLC, which is associated with Anatoly Voitsekhovsky, took on the development of the lucrative site. Instead of a single nine-story building, they planned to construct four 25-story buildings. They even managed to completely construct one of the buildings. But in 2016, the Pechersky District Court established a felony land seizure, and the construction project was seized.
Despite this, construction work continued on the residential complex's premises until January 2021. Residents moved into the completed building. And real estate websites still offer apartments in the problematic new building. It's worth noting that there are still some brave souls buying property here, despite the dangerous location and foreclosure.
3rd place. LOTUS LLC
Owning a riverside cottage is everyone's dream. Lotus LLC promises to make it happen. The developer plans to build the Marina Club cottage community in the village of Kozin, Obukhiv district, Kyiv region. To this end, it has reportedly acquired 13 plots of land, which will soon be home to luxury homes with private yacht docks and spa areas.
A tempting offer. But again, everything isn't as perfect as the sales department makes it out to be.
Land plots between Kyiv and Kozyn have been the subject of legal disputes since 2008. Essentially, the territory where Lotos LLC plans to build the Marina Club complex is a water protection zone and cannot be privatized.
The land plots were reclaimed and are located in close proximity to the Dnieper River. Therefore, they are unsuitable for construction. The soil won't support heavy structures, and one day the cottage community could turn into Atlantis. Lotus LLC is aware of this, as they were never able to obtain a construction permit.
Read also: A relative of an ECHR judge with a history of corruption filed a complaint against NABU with the ECHR.
Another problem that may arise for owners of cottages in the Marina Club is that the plots are not effectively divided, and some even overlap. This could lead to legal disputes in the future, as it's unclear where your neighbor's property ends and yours begins. Furthermore, yacht moorings and spa areas are prohibited within the water protection zone. The depth of the canal near the shore also prohibits this.
The problems are obvious. But the developer prefers to keep quiet about them. The main thing is to sell, and then let the owners sort things out themselves.
2nd place – Elite-Center Construction Company
But while the residents of the Marina Club residential complex are yet to face difficulties, buyers of real estate in the Elite-Center construction company are already regretting their choice. In the early 2000s, this organization offered favorable terms for purchasing luxury real estate. Many people took the offer, including several government officials and celebrities.
People eagerly invested in real estate. But they didn't realize their square meters were being resold two or three times. In this way, the scammers collected approximately 400 million hryvnias. The fraud was uncovered in 2006, and the mastermind was identified as Alexander Volkonsky (aka Shakhov). Two years later, he was arrested in Switzerland, but in 2016, the swindler again fled.
As a result of the fraud, 1759 people suffered. The defrauded investors have never received their money back. Some of them are still protesting in front of Kyiv City Hall.
However, that's not the end of the story. Igor Tsyganok, the director of the Elite Center, was released in 2016 and declared his intention to complete the long-suffering new buildings. Surprisingly, many believed him. He even began raising money for the construction. But in 2018, Tsyganok was arrested again for extortion. Guess what happened to the investors' money...
1st place. Ukogroup chain
Anatoly Voitsekhovsky is undoubtedly considered the leading Mavrodi of the Kyiv real estate market. Ukogroup's unfinished projects can be found in every district of Kyiv—more than 40 in total, including the Demeevskyi residential complex, the Priozernyi residential complex, the Elegant residential complex, the Sineozernyi residential complex, the Sosnovy Bor residential complex, and many others.
The scammers managed to begin construction without a full package of permits. No one intended to see the project through. Therefore, the prices for the properties offered by Ukogroup were 30% lower than the market average. People were eager to invest their money. As a result, thousands of families were left without their investments and without a roof over their heads.
Kyiv authorities are trying to resolve the issue of unfinished construction. However, the main problem with Ukogroup's properties is that they cannot be commissioned due to the lack of construction permits. Even the completed buildings—28 out of 42—are not connected to utilities. Nevertheless, apartments in these problematic buildings continue to be actively sold and purchased.
Surprisingly, even after Voitsehovsky fled, his case continues. However, this time it's under the "Elite Center" scheme. Property rights to the same square meters can easily be resold to multiple buyers. Therefore, to avoid falling into the hands of scammers, carefully research the developer's information, and better yet, consult with an experienced lawyer.
Author: Grigory Bondar
In topic: "Karabas" for Irpen: Why is the flower town turning into a concrete ghetto?
Subscribe to our channels in Telegram, Facebook, Twitter, VC — Only new faces from the section CRYPT!