Law on Online Trading of Agricultural Land Entered into Force

Monday, July 5, 2021
Law on Online Trading of Agricultural Land Entered into Force

Part of the provisions of the law came into force on June 25. From July 5, land auctions will take place through online auctions

On June 25, the parliament's newspaper Voice of Ukraine published orders to the government cabinet of Ukraine:

  • develop and bring in accordance with this document its own regulatory legal acts;
  • ensure that ministries and other central executive authorities bring their normative legal acts into line with the law;
  • ensure the adoption of regulations necessary to implement the provisions of this document.

From now on, all agricultural land and related documents will be submitted, registered for sale and sold online from anywhere in the world. Information about the lot will be generated automatically and put up for public access, and information about the owner of the lot will remain confidential until the end of the auction.

Online trading involves 3 rounds: each new round — a new rate increase by at least 1% of the starting price. To take part in the auction, you must pay a guarantee fee of 30% of the starting price.

On the first day of the land market opening (July 1, 2021), 33 applications for land tenders were registered.

70% of the land in Ukraine has an agricultural purpose, which means that it can be bought and sold. According to the state geocadastre, as of January 1, 2021, depending on the region of Ukraine, the site costs from $767 per hectare to $1241 per hectare.

With the start of the land market opening, the cost has almost doubled and will continue to grow. According to the results of a survey of the Land Club land service, the owners of shares are ready to sell their plots for $1500-2200 per hectare, said the co-founder of the Denys Bashlyk service. The Land Club service selects a land share according to the client's requests and provides the participant with annual access to the lots for $350 per year.

According to Denys Bashlyk forecasts, Poltava, Cherkasy, ​​Sumy and Vynnytsia regions have the greatest prospects for land price growth in view of the fact that shares here will have an increase in the price of up to 20% per year.

“By 2024, the price of Ukrainian agricultural land will increase 2-2.5 times, up to $4,000 hectares,” Ihor Kravtsov, a partner of the LCF legal group, shared his analytics.

According to estimates, the head of the local assets management division of the investment company ICU Hryhir Ovcharenko, the lease can bring the investor 10-15% per annum.

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