Konnov & Sozanovsky — Advising Various Businesses

Historically, real estate has been a traditional tool for long-term investments. The growing demand for real estate in 2000-2007 dramatically increased the tempo of construction. And it is not surprising, since this sphere of Ukrainian economic and business activity was one of the most popular for both domestic and foreign investors. Construction output grew 14.5% in the first half of 2007 compared to 6.9% of the same period in 2006.

The world financial crisis has not decreased, but even increased the investment attractiveness of real estate in Ukraine. Taking into account the loss of credibility in the financial system on a global scale, real estate remains a merely unique asset for maintaining the real cost of investments. In addition, the price decline for real estate objects allows investors to purchase assets at attractive prices.

The specific feature of the current real estate market lies in the availability of numerous real estate objects on sale, which may be sold below market prices either by banks as a seized mortgage property or by owners due to their current financial problems.  In this connection it is especially important to conduct a proper legal analysis of such objects and ensure correct structuring of the transaction.

The legislation, regulating the construction industry and the real estate market in Ukraine, is very diversified, a bit chaotic and is subject to frequent changes. The restructuring process of construction companies requires a focused attention on pros and cons thereof. Special attention must be paid to the analysis of compliance with the applicable laws and regulations by construction companies.

Therefore, engagement of legal advisors, experienced in real estate projects management and support, is extremely important. Such advisors should not only possess a profound knowledge of the current legislation, but also take an active part in the legislative process, which allows them to foresee and influence changes in the legislation.

Konnov and Sozanovsky’s specialists have a broad experience in issues, related to legal support of acquisition, alienation, lease, sublease and other transactions with all types of real estate objects. We advise national and foreign clients on acquisition, lease and other use of land plots, represent their interests in state authorities at local and national level.

Prices for the real estate objects in the Russian Federation have been constantly increasing up to the middle of 2008. Recent world tendencies influenced the construction industry progress and development of the real estate market in the Russian Federation. However, in spite of the liquidity crisis and reduction in prices for real estate objects, the real estate still remains an attractive object for investment, being almost the unique tool of maintaining the fair cost of investments. In addition, the price drop both for objects of the residential and non-residential sectors allows potential investors to purchase assets at attractive prices in view of the expected rise of prices in the future.

The growing demand for real estate in 2000-2007 dramatically increased the tempo of construction in the Russian Federation. In 2000-2008 some Russian construction holdings entered the European construction markets; their turnover exceeded billions of dollars («Inteko, PIC Group, Mirax Group). It is not surprising, because this sphere of economic and commercial activity has been one of the most attractive for the national and foreign investments for a long time. Even now the construction industry remains an attractive object for capital investments. There is no doubt that after the restructuring of the construction industry in Russia its development will be restored, taking into account the insufficient quantity of sales, office, logistic and residential areas.

Legal factors related to exercise of rights in the real estate sector are important element of investment process. The proper legal analysis and correct structuring of the process of the real estate object acquisition is very important. Such analysis will allow a client to minimize potential risks and to avoid possible problems in the future. In Russia the construction is one of the most difficult spheres of business activity with a high level of responsibility. In view of absence of the efficient legislation, experienced lawyers with the excellent knowledge of legislation, and also practical skills of solving problems in this sphere should be engaged to advise on the respective legal issues.

Konnov and Sozanovsky lawyers have extensive legal experience in all the aspects of construction, planning, architectural and investment activity. Our lawyers provide effective legal assistance to clients and legal support of transactions with the real estate, including acquisition and alienation of the real estate, its lease and sublease. We advise the Russian and foreign clients on questions, related to the real estate and construction, and also represent their interests in courts and before state authorities.


 

 

 

Leading Lawyer Key Practice Office Position  
Derbal, Yevgeniya Tax law Kiev (Ukraine) Partner
Yaremchuk, Helen Corporate law Kiev (Ukraine) Partner
Konnov, Sergei Corporate law Kiev (Ukraine) Senior partner
Gluhovskaya, Tatiana Intellectual property law Kiev (Ukraine) Đartner
Ivanov, Alexey Corporate law Kiev (Ukraine) Managing Partner
Kochergina, Olena Commercial law, real estate, construction, land law Kiev (Ukraine) Partner
Pokotylo, Alexey Commercial Law and Contarcts Kiev (Ukraine) Partner