The total economic benefit of this week’s auctions, including VAT, is projected at 18.5 million UAH.
Key Auction Outcomes
- Total Auction Revenue: The state raised 15.4 million UAH (plus an additional 3.1 million UAH in VAT) from eight online auctions held this week.
- Geographical Scope: The auctions covered 441.7 hectares of state-owned farmland located in the Kirovohrad and Vinnytsia regions.
- Participant Activity: The auctions attracted 58 bids in total. On average, each auction involved about 8 participants, primarily consisting of local agricultural enterprises and farms.
- Value Increase: The final prices for all the land parcels increased by a factor of 9.3 compared to their starting bids.
Highlighted Deal
The standout lot of the week was a 124-hectare plot in the Vinnytsia region. Nine bidders competed intensely, driving the annual sublease price up tenfold from the original asking price. The final winning bid reached 4.7 million UAH per year, bringing the per-hectare cost to 38,217 UAH.
“These results highlight a growing demand and a willingness among agricultural enterprises to pay premium prices for quality farmland,” the project’s representatives noted.
Implications
The surge in rental prices for state-owned agricultural land underscores both the increasing value of Ukraine’s agricultural real estate market and the competitiveness among local producers seeking to expand their operational land base. This trend may encourage more transparent and dynamic land use policies, while also providing a substantial revenue stream for the state.
