The weighted average price of land in Ukraine has increased by 10.4% to 38.5 thousand UAH/ha since the beginning of 2023, and the capitalization of the agricultural land market has increased by 115.1 billion UAH, the press service of the Ministry of Agrarian Policy and Food reports.
“The second stage of the land reform will increase the value of privately owned land plots and landowners’ incomes. Revenues to local community budgets will also increase. In addition, Ukrainian agricultural producers will have access to bank lending secured by land,” the Ministry of Agrarian Policy commented on the launch of the second stage of the land market in Ukraine on January 1, 2024.
The ministry drew the attention of communities to the fact that they now have the opportunity to lease communal agricultural land through Prozorro.
“The sale fills their budgets with UAH 355.2 million in revenue annually. And the turnover and use of agricultural land brings communities an average of 10%-12% of the total community budget,” the agriculture ministry said, adding that only 1% of land was sold in Ukraine during the market’s operation, of which 99.5% remained in agricultural production.
As reported, the land market in Ukraine was opened on July 1, 2021, after the entry into force of the Law of Ukraine No. 552-IX “On Amendments to Certain Legislative Acts of Ukraine on the Conditions for the Turnover of Agricultural Land”.
The second phase of the implementation of the Land Market Law started in Ukraine on January 1, 2024: the market was opened to legal entities resident in Ukraine, and citizens were entitled to acquire up to 10 thousand hectares of land instead of 100 hectares in the first phase. The minimum purchase price of agricultural land should not be lower than the NMV (normative monetary value). Leaseholders retain the preemptive right to purchase the land. Foreigners have no right to sell or buy land. The sale of municipal and state land remains prohibited.
