By KYIV. Nov 1 (Interfax-Ukraine) – The weighted average price of land in Ukraine in January-September 2023 increased by 10.4%, to UAH 38,500 per ha, according to a report on the state of the land market in Ukraine, prepared by experts from the Kyiv School of Economics ( KSE) with the support of the USAID’s Agriculture Growing Rural Opportunities Activity (AGRO).
The analysts said that in Ukraine 31.1 million hectares of land are privately owned, so a price increase of 10.4% is equal to an increase in the capitalization of the agricultural land market by UAH 115.1 billion, which corresponds to approximately a tenth of the revenues of the country’s general budget fund in 2023.
“In September 2023, the weighted average price of one hectare of all agricultural land reached UAH 38,450. At the same time, the weighted average price of land with the intended purpose of ‘commercial agricultural production’ was higher than the average and amounted to UAH 39,000 per ha. This means that marketable land is valued by the market somewhat more than other types of agricultural land in Ukraine,” the KSE said in the study.
According to KSE experts, the highest prices for agricultural land are observed in Ivano-Frankivsk, Lviv, Volyn and Ternopil regions, as well as Kyiv and Poltava regions. The lowest levels are in areas affected by military operations, as well as in front-line areas.
According to the study, in the third quarter of 2023, a total of 21,400 purchase and sale transactions of agricultural plots with an area of 43,500 hectares were implemented, which is slightly different from the indicators of the second quarter, when 44,000 hectares of farmland were sold with the same number of purchase and sale agreements. At the same time, in the second and third quarters of 2023, the land market was significantly more active than in the first quarter, when 15,700 transactions were concluded with a total area of 32,000 hectares.
In the fourth quarter, the land market may grow even more, because after the completion of the harvest and the release of additional resources for the purchase of land, buyers are expected to become more active and demand for the purchase of land plots will increase, KSE predicts.
