The Ukrainian land market may be open to foreigners. This forecast was made by KSE agricultural and land policy expert Roman Neiter during Agro Invest Day.
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Opening of the land market for foreigners
As of July 1, 2024, more than 0.5 million hectares of land were sold on the Ukrainian market. This is slightly more than 1.5% of all agricultural land in circulation. In developed markets, the annual land area in circulation is believed to be around 1-2%. Over three years, this figure is 1.4% of land in circulation. During all this time, over $0.5 billion of land was sold, if calculated at the official value.
Currently, access to the Ukrainian land market is closed to foreigners, but there is a nuance, says Roman Neiter. Since Ukraine wants to join the EU and is undergoing European integration processes, Ukraine will need to take into account the current European legislation.
“In the EU there is a requirement for the free movement of capital, and you cannot discriminate against some members of the European Union compared to other members of the European Union. Those lawyers with whom I spoke interpret that, according to this requirement, the next stage of a major land reform will be opening access to the land market for foreign legal entities and individuals,” says the expert.
Therefore, opening up the land market to foreigners could be the next structural change in the land market. According to the expert, this process will not happen instantly, but this is a broad prospect for which we need to prepare now.
Background
We would like to remind you that the Ukrainian land market started operating on July 1, 2021. At the first stage, individuals who had the opportunity to purchase no more than 100 hectares of land received access to the market. The second stage began on January 1, 2024. It provides for the participation of legal entities that have received the right to acquire up to 10 thousand hectares of property.
Agro Invest Day
Agro Invest Day was held on July 11, 2024 of the year. The conference was organized by the websites “Ministry of Finance” and Finance.ua, as well as the Exchange University and the company “Your Circle”.
Partners also joined the conference: the analytical center at the Kyiv School of Economics KSE Institute, the land investment service Zeminvest, YouTube channel about the most attractive investment offers UkrInvestClub, service for buying and selling land Kupy Pai, online resource AgroPortal.ua.
- Real Estate
