Destroyed workshops, damaged warehouses, administrative buildings scarred by debris — real estate takes the heaviest toll in wartime. To obtain compensation or go to court, these losses must be professionally documented in an actual damages valuation report.
The Kanzas company values real estate damages under Section III of the Methodology for Determining Harm and the Amount of Damages (joint order of the Ministry of Economy and the State Property Fund of Ukraine dated 18 October 2022, No. 3904/1223) — mandatory for such valuations. Our reports have passed review by the State Property Fund.
How real estate damages are determined
The amount of actual damages is the difference between the value of the property before and after the harm (para. 3.1 of the Methodology).
The "before" value is taken at the market value and/or the depreciated replacement cost of property similar in location, purpose, size, structural design and technical condition — prior to the hostilities (para. 3.2). Market value is derived through a comparative model with substantiated adjustments; average price data of similar property from analytical companies may be used.
The "after" value reflects the degree to which the surviving elements of the building remain usable. Correct documentation is therefore critical: partial damage and complete destruction lead to fundamentally different calculations.
The depreciated replacement cost follows the Methodology's formula: the market value of the land plot plus the replacement (reproduction) cost of each building or structure, adjusted by the compounding rate and the degree of depreciation. The construction cost is calculated in accordance with the national Cost Estimating Standards ("Guidance on Determining Construction Costs").
Assets we value
Production buildings and workshops, warehouses and logistics complexes, office and retail premises, transmission facilities, engineering structures — the real estate of enterprises, institutions and organisations of all forms of ownership.
Documents required
- title documents for the real estate;
- extracts from the State Register of Property Rights;
- technical passports;
- documents confirming ownership or lease of the underlying land plots;
- a technical inspection report on the destroyed or damaged property — separately for each item of real estate;
- photographs of the damage taken immediately after the destruction or upon return from occupied territory.
Plus the general block: the fire report, an extract from the Unified Register of Pre-Trial Investigations, the demining certificate.
Deliverable
A real estate damage valuation report with supporting documents — for a compensation claim, criminal proceedings or a lawsuit, including before international judicial bodies. Where reconstruction is planned, a separate reinstatement needs assessment (gross development value) is performed.
We offer report quality that withstands review, realistic timelines and an individual approach to every property. Write to us by email or messenger — we will discuss your buildings and prepare a fee proposal.
FAQ
How do damages differ from reconstruction cost? Damages are the before/after value difference; reconstruction is a separate reinstatement needs assessment.
Is a technical inspection report required? Yes, separately for each property.
Who prepares the inspection reports? The enterprise, municipal commissions or the relevant agencies.
