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The land market has become more active in Ukraine; how have prices for agricultural land changed?

Instead of buying, businesses are selling agricultural land in Ukraine.

The land market has become more active in Ukraine; how have prices for agricultural land changed?

There were 27,300 purchase agreements for Ukrainian agricultural land in the second quarter of the year, with a total area of ​​60,800 hectares (+6.3% and +3.3%, respectively, compared to the first quarter), according to a KSE study.

Experts noted that the main factor behind the second quarter rise in these indicators was a record increase in market volumes in April when 10,300 deals were concluded. After that, volumes decreased. Such a large decline relates to the limited liquidity of agrarians.

The KSE notes that overall land market volumes are recovering after the start of the full-scale invasion, but average monthly sales figures remain 38% below pre-war levels. However, according to experts’ estimates, 0.8% of total agricultural land will be circulated this year, almost corresponding to the indicators of countries with a developed land market.

The cost of land this year is 10-15% higher than before the full-scale invasion.

 

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