Since the beginning of the year, land worth $100 million has been sold in Ukraine

According to official information, during 2023, land purchase and sale agreements worth $100 million were registered in Ukraine. In particular, almost 23,500 agreements were concluded this year for a total area of 65,000 hectares. And in 2022, 23,000 deals worth $70 million were registered with a total area of 69,000 hectares. Estimates show that the land market in 2023 has grown. At the same time, the information for the last month has not yet arrived. According to experts, the price of land and the volume of sales are returning to pre-war values.

Note that another outstanding indicator of October concerns the number of land transactions that were conducted in the Prozorro Sales system. This platform allows you to carry out transactions on the lease of communal land. In one month, 549 agreements were signed there for a total area of 5.1 thousand hectares.

A total of 4,300 plots with a total area of 40,000 hectares have been sold on this site since the start of communal land auctions in 2021. The respective auctions annually bring 355 million hryvnias of rental income to communities. Auctions led to an increase in the price of a hectare at auctions from UAH 2.3 thousand to UAH 9 thousand.

In general, the land market is recovering after the shock of the war, but farmers still have a number of problems. Analysts note that farmers' profits remain lower than before the war. According to experts' estimates, prices for land plots have already started to rise, as well as the number of deals on the sale and lease of land. Among the problems that agrarians often face now, analysts mention the reluctance of banks to issue loans, especially if they concern plots located near the front line.

Experts also note that when calculating for land, the owners usually take into account the "normative-monetary assessment", adding a premium to it. Since the assessment is calculated in hryvnias, its recalculation in dollars became smaller last year. At the same time, market participants agree that the hryvnia price has already risen slightly, if compared with the indicators before the start of the full-scale war between Russia and Ukraine. According to official information, the market is stable, although there is an increase in supply in the frontline areas.