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.