The Ministry of Agrarian Policy and Food of Ukraine expects prices on the land market in Ukraine to rise after it opens for legal entities on January 1, 2024, said Denys Bashlyk, deputy head of the ministry for digital development.
“Those who have been waiting for a long time – legal entities that want to own land to be able to develop long-term investment projects – will enter the market. This, of course, will entail a price increase,” the ministry’s press service quoted him as saying.
Bashlyk noted that currently the highest prices on the land market in Ukraine are recorded in Ivano-Frankivsk, Lviv, and Ternopil regions, where they reached $2 thousand, $1.45 thousand, and $1.4 thousand, respectively.
During a press conference at the Ukraine Media Center on Friday, Prozorro.Sale CEO Serhiy But said that almost 38,000 hectares of land had been sold or leased through the electronic auction system. The vast majority of them are assets of local authorities, cities and towns.
“The organizers hold the largest number of land auctions for agricultural land. At lease auctions, the share of agricultural land is 70%, and at sale auctions – 60%,” he said.
In total, the Prozorro.Sale system has already held auctions for the sale of 2.7 thousand hectares of land for a total of UAH 1.3 billion. A total of 35.1 thousand hectares of land have been leased through auctions.
According to Dmytro Makarenko, acting head of the State Service of Ukraine for Geodesy, Cartography and Cadastre, who also took part in the press conference, as of early October 2023, almost 80 thousand hectares of agricultural land have already been sold.
“In 2021, over 100 thousand hectares of land were put into circulation in the first six months of the land market. In the military year of 2022, the market, of course, shrank and 69 thousand hectares were put into circulation. In 2023, as of October, we already see that almost 80 thousand hectares have been sold and the figures are approaching the pre-war levels,” he said.
As reported, the second stage of the land market will start on January 1, 2024, during which legal entities will also be able to acquire ownership of agricultural land with a limit of 10 thousand hectares per person.
At the same time, the sale of state and municipal agricultural land, as well as its sale to foreigners, will remain prohibited. The preemptive right to purchase a land plot belongs to its lessee. The minimum value of land cannot be lower than its regulatory monetary value.
