Last year, the volume of land sales increased by 58%, and prices are expected to rise this year.

As stated in the review of the KSE, despite the significant growth in the agricultural land market in 2023, it has not yet reached pre-war indicators. Land turnover in 2023 increased by 58% compared to 2022 and covered 172,900 hectares.

At the same time, the growth rate of the weighted average price for agricultural land was somewhat more modest – 8.3%. Therefore, the nominal capitalization of the market increased by ₴89.9B ($2.36B), and since the opening of the land market, by ₴179B.

“Due to the opening of the land market for legal entities from January 1 this year, the value of land is expected to increase by approximately 40% in the future, and therefore the capitalization of the land market will increase to almost $50B. That is, the potential credit financing amount could be $17.5B. This, in turn, would make it possible to close the gap in financing in the Ukrainian agricultural sector, which amounts to about $21B, and in this way meet short-term financing needs, as well as investments in recovery and development”, analysts predict.