Real Estate Valuation in Ukraine

The Kanzas company provides independent valuation of real estate across Ukraine: commercial, residential and industrial property, land plots and construction in progress. We have been valuing property for over 20 years, and our reports are used in transactions, bank lending, litigation and financial reporting, including engagements for international clients with assets in Ukraine.

What we value

Under Ukrainian valuation standards, real estate comprises a land plot with or without improvements inseparably attached to it: buildings, structures and their parts. Our real estate valuation practice covers commercial property (offices, retail, warehouses and logistics complexes, hotels), industrial and production facilities, residential property, construction in progress, and land plots.

When real estate valuation is required

• purchase and sale, including transactions involving foreign-owned companies;
• collateral for bank lending and revaluation of pledged property;
• contribution of property to share capital;
• IFRS financial reporting: revaluation, impairment testing and fair value disclosures;
• lease and determination of market rent;
• litigation and division of property;
• insurance and insurance claims;
• assessment of damage caused to property by hostilities in Ukraine.

Valuation approaches

Consistent with the International Valuation Standards (IVS) and Ukrainian national standards, three valuation approaches are applied. The income approach derives value from the income the property generates or can generate. The market (comparative) approach relies on sales of comparable properties. The cost approach is based on the cost of reproducing or replacing the asset. Within the chosen approach, the appraiser applies specific methods — direct capitalisation or discounted cash flow within the income approach, for example — depending on the property type and available market evidence.

Our track record

Over more than 20 years, the Kanzas company has completed thousands of real estate valuations for lending, collateral revaluation, sale and capital contributions. We have participated in the revaluation of pledged real estate for more than 50 Ukrainian banks, including banks from the top ten, and between 2015 and 2020 worked with the Deposit Guarantee Fund of Ukraine on the revaluation of real estate of insolvent banks. Valued assets include logistics complexes, office centres and shopping malls, industrial property of major enterprises for lending — including syndicated facilities — and development projects, from asset valuation through feasibility studies and development concepts.

Documents required

The basic set consists of title documents and the technical passport of the property. The exact list depends on the property type and is agreed with the appraiser at the start of the engagement.

Questions and answers

Do you value property owned by foreign companies or investors? Yes. We value real estate in Ukraine for foreign owners and investors and prepare IVS-based valuation reports in English.

How long is a valuation report valid? In Ukrainian practice, a land valuation report is typically relied upon for up to 12 months, and reports for other types of real estate for up to 6 months; after that, a notary may request an updated report.

Can the report be used for bank collateral? Yes. Our real estate valuation reports are accepted by Ukrainian banks for lending secured by property, and we take the specific bank's requirements into account.

Email us or message us in your preferred messenger to discuss your real estate valuation task — we will confirm the scope, timing and fee.