Auctions of the "Land Bank" replenished the state budget by UAH 35 million in a month

During the first month of operation of online auctions for the sublease of state agricultural land within the framework of the project of the State Property Fund of Ukraine "Land Bank" in the "Prozorro.Prodazhi" system, 93 auctions were held. 4,695 hectares of land were put up for them. Due to significant competition - an average of 14 participants at each auction - the total starting value of the sublease increased 8.4 times, and the average price per hectare was UAH 29.6 thousand per year. The final amount of the winning bids amounted to UAH 139 million per year, excluding VAT. By the way, there is not a single agricultural holding among the auction winners. They reached approximately UAH 20,000 per hectare and stopped.

The most expensive lot was a plot of land in Cherkasy with an area of ​​191 hectares. 21 participants competed for it, which increased the initial bid 10 times to the winning 9 million hryvnias. The price per hectare of this plot reached UAH 47,000. In total, the "Land Bank" has announced 252 auctions in 13 regions of the country. Plots with a total area of ​​21,044 hectares are offered for auction. The area of ​​the plots varies from 2 to almost 4 thousand hectares. This allows bidders to choose the lots that best suit their needs and scale of business.

Regarding land legal relations, it is worth adding that during the first nine months after the land market was opened for them, legal entities concluded 12,800 agreements with a total area of ​​37,400 ha. 1184 companies used this right. Therefore, the share of legal entities in the agricultural land market as of mid-autumn was 20.5. Most of the land plots acquired by legal entities are former moratorium lands: 75.5% of the plots are commercial lands. The area of ​​plots purchased by legal entities in 2024 is unevenly distributed by region — 22% are located in the Poltava region. Among the leaders are also Dnipropetrovsk (12% of the area of ​​plots purchased by legal entities), Khmelnytskyi (7%) and Sumy (6%) oblasts. Legal entities did not purchase a single plot of land in only two regions of Ukraine — in the Luhansk region and the Autonomous Republic of Crimea.

We should also note that, according to market experts, the price of land in Ukraine may increase by 10% by 2025. But in 2025, most likely, the land market will continue its upward trend, with a moderate increase in prices and rental rates. Land in the central regions can add 8-10% annual value in dollars, or 15-20% in hryvnias. After all, the auctions for the lease of state lands created the prerequisites when the state itself is interested in regular revision of the normative monetary valuation (NGO) of the land. This could affect leases where rental rates are tied to NGOs and potentially lead to an increase in those rates.