As Grigory Ovcharenko, ICU’s local asset manager reported during the "Investinsight" conference:
“Since 1 July, the land market has been opened. It is not a stock market instrument in itself, but it will allow the launching of instruments that will also be linked to that market. First of all, any fibrosis can buy up to 100 hectares. We already know that this will happen, including on digital platforms. It will be simple, understandable, transparent. Today, the value of land between 1,000 and 2,000 will be $1,000. At our neighbors the cost of land is at least 5 times higher”, Ovcharenko said.
With the opening of the land market in the Czech Republic, Poland and Romania, the increase in land value over the 10 years were between 20 and 40%. Based on the example of Ukraine’s European neighbors, it can be assumed that the growth dynamics will be repeated.
“The existing valence yield ranges from 8-14%. Therefore, land can also be an interesting investment, given that the minimum pay is 2.4 hectares or more, which means that the minimum investment is between 4.5 and more thousand. dollars. This is the threshold of entry that is acceptable to many. This is a move that may be acceptable this year”, commented Grigory Ovcharenko.
- Up to 100 hectares — the volume of land per 1 individual until 2023 with the prospect of an increase by 10,000 hectares from 2024
- Land value — 1,500-2,000 ₴ per hectare ($55-73)
- Rental return — 8-14% per annum depending on land value