Further improvement of laws and regulatory policies needed to address corruption risks in nonstate-funded housing construction in Ukraine, OSCE-supported study says

Investing in a future apartment in a newly constructed residential building has been a key way for millions of Ukrainians to preserve their savings, or secure housing for themselves and their families. However, corruption can significantly increase costs, lead to prolonged legal disputes, or even expose investors to fraud schemes. New research conducted under a project of the OSCE Support Programme for Ukraine, in partnership with the National Agency on Corruption Prevention (NACP) identifies key corruption risks in this area and proposes ways to address them. The study, titled “Corruption risks related to the procedure for investing and financing the construction of housing projects using non-state funds raised from individuals and legal entities: modeling and proposals for their minimization/elimination”, was presented on 27 March 2026 in Kyiv.

The research provides an overview of current regulatory framework and outlines ten key corruption risks in this sector. Each risk includes a detailed description of identified vulnerabilities that may be exploited by perpetrators, along with recommendations for authorities on how to address them. The study also refers to publicly known cases and models scenarios in which corruption can occur. 

"The construction sector is among the top seven most corruption-prone sectors and is full of risks. Therefore, the topic of the study is very relevant in the context of corruption prevention. In addition, the country is at war, with widespread destruction and displacement, making it especially important that people looking for new homes are not deceived," Serhii Hupiak, Deputy Head of the NACP noted.

“Transparency of investment mechanisms and construction financing is a matter of trust- trust of citizens, investors, and international partners. And today, with Ukraine’s reconstruction plans, these issues are becoming even more critical. The study offers a systemic view of corruption risks in housing construction financing. This approach enables proactive action: identifying risks at early stages and developing practical recommendations to increase transparency and regulatory effectiveness,” said Natalia Stupnytska, Associate Programme Co-ordination Officer of the OSCE Support Programme for Ukraine. 

For example, the study finds that some risks stem from gaps in recently introduced legislation , which does not fully address construction projects initiated before its adoption.This creates excessive discretion for authorities in issuing permits for exploitation or registering property rights, leaving investors vulnerable. To address this, the research offers measures such as standardized procedures for  property rights registration, mandatory introduction of necessary data in a unified digital roster, and other regulatory improvements. 

The research was carried out by experts as part of the OSCE project “Supporting the Development of Effective Tools for the Prevention of Corruption and Enhancing Anti-Corruption Compliance in Ukraine”, in co-operation with specialists from the National Agency on Corruption Prevention.