How Much Does a Hectare of Land Cost: Results of Five Years of Market Activity in Ukraine

Over the five years since the land market was established in Ukraine, more than 500,000 sales transactions have been concluded, and the average price per hectare has more than doubled—reaching nearly UAH 66,000.

This is according to an analytical report by KSE Agrocenter, as reported by Dengi.ua .

How many land transactions have been concluded over the past five years

The lifting of the moratorium on the sale and purchase of agricultural land on July 1, 2021, marked a key milestone in land reform. Despite the full-scale war, the market is demonstrating growth rates comparable to those of certain European countries.

Over the five years the market has been operating , more than 500,000 purchase and sale transactions have been concluded, covering a total area of approximately 1.15 million hectares. The Poltava, Dnipropetrovsk, and Kharkiv regions lead in terms of total land area purchased.

The market’s stability is partly due to its opening to legal entities as of January 1, 2024, which has made the segment more liquid and attractive to business investors.

How Much Does a Hectare of Land Cost in Ukraine

Land prices continue to rise rapidly: the weighted average purchase price increased from approximately UAH 30,000/ha in 2021 to nearly UAH 66,000/ha in current prices.

At the same time, the rate of increase in land prices significantly exceeds the inflation rate in Ukraine, making agricultural land an extremely attractive and reliable asset for long-term investment.

How the State Land Lease Market Works

The market for leasing state- and municipally-owned land also plays a significant role in land relations. All transactions are conducted with maximum transparency through the state electronic auction system “Prozorro.Sales.”

As a result of these auctions, more than 237,000 hectares of state- and municipally-owned land have already been leased, and the number of successful auctions has exceeded 21,000.

How Auctions Affect Rent

Competitive electronic auctions ensure significant and stable growth in rent. On average, the final rent rate resulting from open auctions is nearly four times higher than the starting rate.

This clearly demonstrates the significant economic impact of fair competition compared to the legacy methods of lease allocation without auctions.