Land Sale Transactions in Ukraine Surge by 50% in February 2024

by Roman Cheplyk
Tuesday, April 2, 2024
Land Sale Transactions in Ukraine Surge by 50% in February 2024

In February 2024, Ukraine witnessed a significant increase in land transactions, with 9,600 land purchase and sale agreements covering a total of 22,000 hectares

This represents a 50% jump compared to January of the same year, according to an analytical review prepared by KSE Agrocentr in collaboration with the USAID Program for Agrarian and Rural Development (AGRO).

This increase surpassed the previous peak observed in December 2023, where 8,200 deals involved 19,800 hectares of agricultural land. The most active regions in the land market since the beginning of 2024 are Poltava, Dnipropetrovsk, and Kirovohrad oblasts.

Following the market's opening to legal entities, 266 companies have acquired agricultural land, with 223 of these making purchases in February 2024 alone. The involvement of legal entities in the land market is on the rise, with their share reaching 15.8% in February, up from 10.3% in January.

A significant portion of the land purchased by legal entities were plots previously under a moratorium, with 40% of the total area sold since the year's start located in the Poltava region. Notably, the front-line regions of Sumy and Kharkiv also saw considerable activity from legal entities.

Land prices have remained stable, with the weighted average price per hectare in February 2024 at UAH 41.6 thousand, closely matching January's figures. The analysis also highlighted a discrepancy in transaction prices between individuals and legal entities, suggesting that legal entities might be willing to pay higher prices for agricultural land or are more inclined to report the real transaction price in official documents.

This surge in land transactions indicates a growing interest and confidence in Ukraine's agricultural land market, reflecting an increasing trend of legal entities actively participating in land purchases.

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