Prices for land in Ukraine outpace inflation

This information is outlined in the latest analytical market overview of Ukrainian lands, prepared by KSE Agrocenter with the support of the USAID Agricultural and Rural Development Program – AGRO.

According to the State Geocadastre, since the opening of the land market, 195.9 thousand purchase and sale agreements have been concluded, covering a total area of 432.2 thousand hectares. Therefore, as of January 1, 2024, 1.05% of all agricultural lands in Ukraine were in circulation.

“The average weighted price of agricultural land in 2023 was 37 thousand UAH/ha, which is 13% higher than the figure for the previous year (32.8 thousand UAH/ha in 2022),” analysts add.

According to the report, the average weighted price of agricultural land increased by 8.3% during 2023, surpassing the annual inflation rate in Ukraine (5.1% as of December 1, 2023).

“Thus, the nominal capitalization of the market at the end of last year increased by 89.9 billion UAH, and since the opening of the land market in July 2021, by 179 billion UAH, creating additional opportunities for landowners to attract financing with land as collateral,” experts add.

In a regional breakdown, the highest land prices in 2023 were observed in Ivano-Frankivsk, Lviv, Ternopil, Kyiv, and Poltava regions, while the lowest were in areas most affected by occupation or hostilities: Luhansk, Zaporizhzhia, and Kherson regions.

“During the market’s operation, the total amount of investments in the purchase of agricultural land amounted to 17 billion UAH. Of these, 9.5 billion (56%) were invested after the start of Russia’s full-scale invasion,” experts specify.

Thanks to the turnover and use of agricultural lands, local community budgets were enriched by 33.7 billion UAH in the first 11 months of the past year. This represents almost 12% of total tax revenues. The largest share of these revenues was generated by the lease of municipal land, amounting to 18 billion UAH.

Source: AgroPortal