Substantial Growth in Ukraine’s Agricultural Land Turnover in 2023

by Roman Cheplyk
Wednesday, January 31, 2024
Substantial Growth in Ukraine’s Agricultural Land Turnover in 2023

Ukraine witnessed a significant surge in its agricultural land turnover last year, recording a 58% increase to reach 172.9 thousand hectares, compared to the figures of 2022

This remarkable growth was highlighted in the "Analytical Review of the Land Market in Ukraine for Q4 and December 2023," published by the Center for Food and Land Use Research at the Kyiv School of Economics (KSE Agrocenter).

The review further revealed that the weighted average price of agricultural land in Ukraine experienced an 8.3% rise over the course of 2023, outpacing the country's annual inflation rate. Consequently, the nominal market capitalization saw an increase of UAH 89.9 billion in 2023, summing up to a total growth of UAH 179 billion since the inception of the land market.

The fourth quarter of 2023 marked the peak in the number and area of agricultural land transactions for the year. The quarter accounted for 23.8 thousand transactions covering a combined area of 53.9 thousand hectares. Furthermore, there was a notable increase in the sale of communal land lease rights through the Prozorro auction system. The volume of these sales escalated more than fourfold, from 402 auctions for plots totaling 3.6 thousand hectares in the first quarter to 1,677 auctions for plots amounting to 14.5 thousand hectares in the fourth quarter.

This substantial growth in agricultural land turnover in Ukraine signifies a positive trend in the country's land market, reflecting increased activity and investment in the agricultural sector.

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