Land in Ukraine may soar in price
In Ukraine, agricultural land has risen in price by an average of UAH 7 thousand per hectare since the market opened. Over the next few years, land plots may rise even further in value.
Vitalii Koval, the head of the Ministry of Agrarian Policy and Food, said this, Forbes Ukraine reports.
How land prices will change
Despite the war, land on the market continues to rise in price. If in 2021 it cost 39 thousand UAH per hectare, in 2024 it will cost 46 thousand UAH per hectare. Koval noted that the Ukrainian land market is slowly gaining commercial attractiveness.
"In 2021, there was caution. In the first year of the market opening, 74,392 land plots, or 178.34 thousand hectares, changed hands. In 2024, 193,560 plots, or almost 400 thousand hectares, were alienated. This level of market volatility and liquidity allows us to say that the land reform has taken place", he said.
According to the Minister, this trend will continue in the coming years.
Land Bank auctions to start on October 1
The head of the Ministry of Agrarian Policy reminded that the first auctions for the lease of state land will open on October 1 on Prozorro.Sale. Under the Land Bank program, it will be possible to lease land plots of various sizes, starting from 2 hectares. The largest one — 3.97 thousand hectares — is in Kirovograd region.
The project will create equal conditions for all market participants, where everyone will have the opportunity to participate in an online auction. It aims to provide new opportunities for agricultural development.
According to the SPFU, the starting price of the lease is between UAH 9 thousand and UAH 1.14 million. The highest bidder will win, which will be determined through transparent bidding. The auctions will include land plots ranging from small farms of 2 hectares to large ones of 262 hectares.
What else you need to know
As a reminder, the value of agricultural land in Ukraine has decreased, albeit slightly. In September 2024, the average price per hectare was UAH 46.75 thousand, compared to UAH 47.74 thousand in August. That is, the price of land fell by almost UAH 1 thousand.
We also wrote that pensioners who receive an old-age pension have the right not to pay land tax, subject to certain restrictions on the size of the plot. In particular, if they are engaged in personal agriculture — up to two hectares of land.