This year, the cost of agricultural land in the central regions of Ukraine can increase significantly. This was stated by Deputy Minister of Agrarian Policy and Food on Digital Development Denis Bashlyk in an interview for Economic Truth. According to him, the expected increase in value can be up to 20%, which is the result of several important factors.
One of the main factors that will promote the value of agricultural land in the central regions is the limited number of available land. Earth is a limited resource, and every year it becomes less accessible to investment. Additional factors are the consequences of war: replacement, land pollution through combat and occupation, which significantly reduce the number of attractive land shares. These factors create high demand for limited land, which leads to an increase in their value. Since the beginning of the free land market in Ukraine, the number of transactions concluded has increased significantly, increasing 3.5 times. As of today, more than 104 thousand land plots, with a total area of more than 300 thousand hectares, have been bought in Ukraine. The average cost of 1 hectare of land today is 46.7 thousand UAH (approximately $ 1600).
According to these legal entities, 24.5 thousand land plots with a total area of 76.5 thousand hectares were redeemed, of which 2.8 thousand land plots were sold in the primary market. At the same time, individuals purchased 79.9 thousand plots with a total area of more than 237 thousand hectares. The highest prices for agricultural lands are currently fixed in the central and western regions of Ukraine. The highest rates of liquidity and value for land are observed in the following areas: Ivano-Frankivsk region. - 90.3 thousand UAH per 1 ha, Lviv region. - 71.9 thousand UAH per 1 ha, Poltava region. - 66.3 thousand UAH per 1 ha, Ternopil region. - 64.1 thousand UAH per 1 ha, Kyiv region. - 60.1 thousand UAH per 1 ha.
These regions show high demand for land, which is due to the growing interest in agricultural land, as well as the stability of the economic situation in these areas. At the same time, the lowest prices for land are recorded in regions affected by hostilities and located near the front: Zaporizhzhya region. - 33.4 thousand UAH per 1 ha, Mykolaiv region. - 34.1 thousand UAH per 1 ha, Sumy region. - 34.9 thousand UAH per 1 ha, Kherson region. - 35.9 thousand UAH per 1 ha, Donetsk region. - 36 thousand UAH per 1 ha. Among the leaders in the number of land acquired by legal entities, one can see: Poltava region - 4699 plots, Sumy region - 2515 plots, Kyiv region - 2210 plots. These areas are traditionally one of the most active land in the market, with high demand for land among both individuals and legal entities. It is also worth noting that the highest average price per 1 hectare for legal entities was recorded in the following areas: Ivano-Frankivsk region. - 161.9 thousand UAH, Ternopil region - 98.1 thousand UAH, Rivne region - 94 thousand UAH. In view of the forecasts, it should be expected that the cost of agricultural land in the central regions of Ukraine will continue to grow, which will give new opportunities for investment in the agricultural sector. At the same time, for other regions affected by the war, the restoration of the land market may be more difficult due to pollution and replacement of territories.
The land market in Ukraine is gaining new features, and investors must take into account not only the economic factors, but also the geopolitical situation, which directly influences land agreements in different regions of the country.
