The number of land transactions is expected to continue to grow in 2025.
The land market in Ukraine continues to demonstrate dynamic growth in 2025. The average cost per hectare has already reached $ 1.5 – 2.5 thousand, and the number of transactions is steadily increasing. The main factors in this process are the active entry of legal entities into the market and the expectations of share owners for further price growth.
This is reported on the AgroReview website.
How is the land market developing?
Land reform in Ukraine took place in gradual stages:
- Since July 2021, only individuals could buy land, and only from other individuals;
- since January 2024, legal entities have been granted access to the land market, which has sharply increased the number of transactions;
- restrictions: individuals and legal entities cannot own more than 10 thousand hectares of land.
The land market was also affected by the war. Thus, in 2022, due to the temporary closure of registers, activity decreased significantly, but already in 2023 the situation began to stabilize. In 2024, 146,513 transactions were concluded – this is 34% more than in the previous year.
Why did the market become more active?
Legal entities have been given the opportunity to buy land, which has increased competition.
Business activity is gradually recovering, despite the difficult economic situation. Since 2021, 396,429 transactions have been concluded in Ukraine for an area of 877,805 hectares. However, on a national scale, this is only 4% of the total land fund, which indicates the restrained activity of farmers.
Rising prices encourage share owners to hold on to land, waiting for even more favorable offers.
What influences the price of land?
The cost per hectare is determined by several key factors:
- Soil fertility (bonitet) – the higher the quality of the land, the more expensive it is.
- The policy of agricultural holdings in the region – some companies buy up land, others rent it.
- Location – land near highways, cities or recreational areas is significantly more expensive.
Land prices in Ukraine
Today, the average market price per hectare in Ukraine is $1,500-$2,500, although official estimates may be significantly lower. For example:
- In the Rivne region, the standard value is UAH 27,000/ha, the market value is UAH 49,400/ha, and the real value is UAH 60,000-80,000/ha.
- In Europe, the average price per hectare is $10,000, although in Ukraine, individual plots are also sold at similar prices.
Due to the high tax burden, many sellers agree to execute transactions at the minimum permitted valuation (normative monetary valuation – NMV), which distorts the real market picture.
What will happen to the land market in 2025?
The number of transactions is expected to continue to grow in 2025, prices will approach market indicators, and demand from legal entities will remain high.
However, the lack of state control over land valuation creates risks, in particular, underestimation of real prices and budget losses due to unpaid taxes.
In general, the land market in Ukraine continues to evolve, and 2025 may become a turning point in the formation of transparent prices and mechanisms for the purchase and sale of agricultural land.
By the way, selling an apartment in 2025 in Ukraine will be a difficult test due to new taxes and rising prices.
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