Demand for land is growing, albeit in waves due to a number of wartime risks. But there are quite a lot of investors actively investing in land. This was announced by the commercial director of the company “Your Circle” Egor Lesnichy during Agro Invest Day.
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Who buys land
According to him, most of them, as of early July, are representatives of the IT sector. The bulk of active investors are men (72.2%) who live mainly in Kyiv (36.2%) and invest mainly in areas of up to 10 hectares.
Not all land owners now want to sell it: the majority either expect an increase in value; for others, renting is enough, the expert says. But prices have already increased over the three years of the market’s operation.
“If you look at the regions where we work, then we can talk about an increase in prices over the entire period of operation of the land market from $2600 to $2900 and above hectares,” – says Egor Lesnichy.
According to the expert, the company has created 2 REITs that will help investors reduce risks and save on investments in land.
The first offers a yield in hryvnia of 6% per annum, which the investor receives as dividends once a year. The return that the second one gives is 15% in foreign currency, paid at the end of the fund.
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