1% of agricultural land sold in Ukraine over two years of land market reform
Over the two years of the land market's operation in Ukraine, 1% of agricultural land has been traded. From July 1, 2021, to July 1, 2023, 85,247 sale and purchase agreements were concluded, announced Deputy Minister of Agrarian Policy and Food Denys Bashlyk during a press conference on the results of two years of land reform.
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"In total, 275,157 hectares of agricultural land have been sold and donated over the past two years, which is 1% of all agricultural land. This dispels the myth that everything will be sold at once. The amount of agricultural land is 27.50 million hectares. That is, on average, 0.5% of the land is sold per year," he said.
In the first year of the land market opening, 27,696 transactions were concluded, in the second – 23,000, but in 2022 the market did not work for almost four months. In the first half of 2023, 18,000 deals have already been concluded.
"People continue to sell and buy land. This is one of the indicators of faith in our victory," he emphasized.
The average price per hectare is UAH 39,000 ($1,056), but prices vary by region. For example, in 2022, the cost per hectare in Ivano-Frankivsk Oblast was almost UAH 100,000 ($2,708).
In 2024, when the second phase of the reform begins and legal entities are allowed to enter the market, the price of land will increase further, he added.
According to the deputy minister, land reform has a positive impact on the entire agricultural sector. In particular, after the launch of the government's eRobota grant program in 2022, the area of land for gardening has increased dramatically.
"People feel more secure because they are gardening on their own land, not leased land," Bashlyk said.
Prozorro.Sale CEO Serhiy But emphasized that the launch of the land market is an important step towards a fully-fledged market economy. Electronic auctions for the sale and lease of land were launched at the beginning of the reform. Over the two years of the reform, more than 16,000 online auctions for the sale of land have been held, which have brought in more than UAH 1.3 billion ($35.2 million) to the budgets of various levels.
On March 31, 2020, the Verkhovna Rada adopted a law on the turnover of agricultural land. Starting July 1, Ukrainians have the right to sell/buy land plots.
In the first year of the land market's operation, more than 105,000 transactions were concluded in Ukraine, including 88,000 land sales and purchase transactions totaling more than UAH 7 billion ($189.5 million).
As of the beginning of 2023, almost 143,000 land transactions covering a total area of 322,194 hectares have been concluded since the launch of the land market. Of these, almost 42,000 transactions took place during the full-scale war. The average price per hectare amounted to over UAH 52,000 ($1,408), a 47% increase compared to the same period of the previous year.
The price of agricultural land in Ukraine increased by 20% on average in January-April 2023.