Prices on the Ukrainian land market are expected to increase by 15-20% in the coming years, assuming a positive scenario.
This forecast was shared by Ihor Lisetskyi, coordinator of the land committee of the Ukrainian Club of Agrarian Business (UCAB).
Over the three years of the land market’s operation in Ukraine, about 3% of the total agricultural land has been sold. According to the expert, this percentage of sales is typical for countries just beginning to open up their land markets.
"Currently, the most active sales are happening in central Ukraine, as this region contains the largest share of agricultural production, the biggest fields, and the most fertile land. Moreover, it is in central Ukraine that a significant number of land hectares are owned by each citizen. Compared to the western part of the country, where prices are also high, the average size of a share is smaller," adds Ihor Lisetskyi.
He also identified several factors that affect land prices:
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Supply: Those who wanted to sell land at the beginning have already exercised this right and sold their plots. There is another portion of the population that wants to sell but is waiting for better pricing. They fix the price they want to achieve and will sell only when that price is met.
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Demand: The number of individuals looking to expand their land holdings is also limited. Among agricultural producers and all those interested in land use, there is no excessive demand or frenzy to buy up all available land. This is because, firstly, it is illiquid, and secondly, it is quite expensive.
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Hryvnia devaluation and the war.
