In Ukraine, during the second quarter of the current year, there were 27,300 transactions for the purchase and sale of agricultural land with a total area of 60,800 hectares. This represents an increase of 6.3% in the number of transactions and 3.3% in the area compared to the previous quarter.
This information is detailed in the market analysis report on land in Ukraine, prepared by KSE Agrocenter in cooperation with the USAID Agricultural and Rural Development Programme (AGRO).
The report states, "The main factor behind the growth in these indicators was a record increase in the volume of land transactions in April 2024 (10,300 transactions covering 22,500 hectares). After this, market volumes decreased in May (9,000 transactions covering 19,800 hectares) and in June (8,000 transactions covering 18,500 hectares)."
The analysts suggest that "this decline might be due to the limited liquidity of agricultural producers, as the planting campaign had been completed by May–June, but the harvest had not yet begun, thus limiting the financial resources of agricultural producers. There may also be supply constraints. With the rise in land prices following the market's opening to legal entities, landowners might be holding off on selling."
It is also noted that "during the first six months after the market opened to legal entities, 823 legal entities took advantage of the opportunity to purchase agricultural land. During this period, they completed 7,200 transactions with a total area of 21,500 hectares."
Thus, "the share of legal entities in the agricultural land market (by the area of land acquired) was 18% during this time."
Additionally, with the market opening to legal entities, "the average land price increased significantly. In the fourth quarter of 2023, the average price was 37,800 UAH per hectare for all sold land. By the first quarter of 2024, this had risen to 42,000 UAH per hectare, an increase of 11.2%. The trend of rising prices continued into the reporting quarter: by the end of the second quarter of 2024, the average price reached 43,500 UAH per hectare for all sold land (+3.7% compared to the previous quarter and +15.3% compared to the fourth quarter of 2023). Prices for so-called commercial land were even higher, at 44,800 UAH per hectare."
Comparing the average prices of June 2024 to December 2023, "the average price for all land increased by 18.6%—from 37,000 UAH per hectare to 44,000 UAH."
As a result, "the capitalization of the agricultural land market grew by 285.6 billion UAH between December 2023 and June 2024."
