Land price: how much, where and how to get land in Ukraine
3 April 17:14
Over 20,000 hectares of state land have been transferred to legal use on transparent and competitive terms as a result of the Land Bank’s online auctions over the past six months. This was reported by the Ministry of Economy, Komersant ukrainskyi reports.
As you know, the Land Bank is a project of the State Property Fund of Ukraine, which allows virtually every Ukrainian to start their own business by renting a land plot through an online auction on Prozorro.Sale.
How successful is the project?
Since October 1, 2024, Prozorro. Sale system, 506 online auctions of sublease of state agricultural land have been held.
The total area of land put up for auction is 35,235 hectares in 17 regions of Ukraine.
The sales resulted in sublease agreements for land plots covering 20,521 hectares.
The project paid UAH 584.9 million including VAT for the right to use state agricultural land.
What are the benefits of the Land Bank?
- Transparency of the mechanism for leasing state agricultural land.
- High competition in the bidding process, which contributes to the price increase.
- Effective land management that allows to keep it in state ownership.
- Generation of budget revenues.
Where land plots were most actively and profitably auctioned
According to the results of the transactions, the highest average price per hectare was recorded in Ivano-Frankivsk region – UAH 47.5 thousand. The lowest average price was in Zakarpattia region – UAH 3,496 per hectare.
The highest competition was observed in Vinnytsia region – an average of 22 bidders per lot, Poltava and Cherkasy regions – an average of 14 bidders per lot.
On average, 7 bidders competed for each lot, which increased the starting price of land sublease by 8 times.
Who won the auctions
Over the six months of the auction, 3,463 bids were received, mostly from small and medium-sized farms and agricultural enterprises.
69.1% of the winners of the Land Bank’s auctions are small and medium-sized agribusinesses.
What is currently offered for bidding
As of April 3, 394 land plots with a total area of almost 12 thousand hectares are available for sublease in the electronic system Prozorro.Sale.
In particular, the largest lot of the first pool of the Land Bank is a 3969-hectare plot in Kirovohrad region. Its starting price is UAH 13.7 million, and the second auction is scheduled for April 22. The smallest plot – 0.03 hectares – is located in Zakarpattia.
How to lease a land plot
In order to participate in the auction for the lease of state land, you need to
– select a lot after reading the information provided about it,
– register on any of the sites connected to the system,
– submit an application for participation in the auction through the e-cabinet,
– pay the registration and guarantee fee,
– participate in the auction by placing a winning bid,
– pass the qualification,
– enter into an auction agreement and pay the sublease fee for the first year.
You can follow the available land plots on the project’s official website.
What land assets does the state own?
As of the first half of last year, the total amount of state land amounted to 806 thousand hectares. Of these:
– 386 thousand hectares were managed by the State Property Fund;
– 277 thousand hectares – in the National Academy of Agrarian Sciences;
– 99.2 thousand hectares in the Ministry of Justice.
More than 40 thousand hectares are in other ministries.
How active is the land market in Ukraine?
During 2024, 106,669 land plots with a total area of 320,660 hectares were sold in Ukraine. The average price per hectare was 46 678 UAH (1 163 USD). This was reported by the Ministry of Agrarian Policy.
According to Minister Vitaliy Koval, despite the opening of the land market, only a small percentage of citizens have exercised the right to alienate their land in 3.5 years.
“Although in 2024, the volume of land sold was higher than in the first 2.5 years after the moratorium was lifted,” Vitaliy Koval stated.
In 2024, the largest areas were sold in Poltava (45,622 hectares), Odesa (33,024 hectares) and Dnipro (30,623 hectares) regions. The smallest areas were sold in Volyn (818 hectares), Rivne (909 hectares) and Ivano-Frankivsk (1,094 hectares) regions.
How much does Ukrainian land cost nowadays?
According to the Ministry of Agrarian Policy, since the moratorium was lifted, legal entities have bought 25,157 plots (78,307 hectares). The average price of 1 hectare is UAH 62,656 (USD 1,561). Individuals bought 81,512 plots (242,353 hectares). The average price per hectare was UAH 41,510 (USD 1,034).
The highest average price was recorded in Ivano-Frankivsk (UAH 89,744), Lviv (UAH 71,390) and Poltava (UAH 66,232) regions. The lowest average price was recorded in Zaporizhzhia (UAH 33,981), Mykolaiv (UAH 34,033), and Sumy (UAH 34,936) regions.
