The land in Ukraine is being sold at deliberately low prices.

The government should pay attention to the low registration prices and undervaluation of Ukrainian land market transactions, says an analytical report by KSE. The report on the state of the Ukrainian land market was prepared by experts from the Center for Food and Land Use Research at the KSE Agrocenter with the support of USAID.

The analysis revealed two systemic problems: the low level of price registration in the State Register of Real Property Rights and the underpricing of land during transactions. Thus, since the beginning of 2023, the share of transactions with a registered price was only 18.8% of all purchase and sale agreements, while in 2022, this figure was 34.4%, and in 2021 was 55.0%. At the same time, in 60% of cases when the plot price was indicated it was at the minimum possible level, at the normative monetary assessment.

“The ratio between the purchase and sale prices and the retail value at the electronic land auctions at 1:4.5 ratio shows that the registered purchase prices and sale agreements are twice lower than the market prices“, the study emphasizes.