Agricultural land purchase and sale prices in May 2024 increased significantly compared to previous months and are currently the highest for the entire land market existence.
This follows from a statement by the Center for Food and Land Use Research of the Kyiv School of Economics (KSE Agricultural Center), the Ukrainian News agency reports.
Thus, the weighted average price per hectare in May was UAH 45,000, which is 8.2% more than the prices in April 2024 and 5.6% more than the prices in March 2024.
Moreover, the price of land designated "for commercial agricultural production" was even higher and reached UAH 46,200.
According to the notification, the specified prices are based on the official prices registered in the Register of Real Property Rights when concluding purchase and sale agreements.
At the same time, market prices for land can be much higher because the majority of all deals are concluded at a price that does not differ from the regulatory, monetary assessment (the minimum price established by law for former moratorium lands) by more than 2%.
"Taking into account the slight decrease in prices in April 2024, the increase in the value of agricultural land in May this year can hardly be considered a long-term trend. However, it is worth noting that since the beginning of 2024, average land prices have remained significantly higher than in previous periods. Therefore, it can be stated that the opening of the land market for legal entities in January 2024 caused structural changes in market conditions, and as a result, led to an increase in the value of agricultural land," the message states.
Thus, since the opening of the land market for legal entities, 724 companies have used the right to purchase agricultural land, of which 318 companies purchased at least one agricultural plot in May 2024.
At the same time, it is noted that the number of legal entities on the land market has a significant potential for growth; in particular, in Ukraine, 23,500 agricultural producers are engaged in the production of cereals and legumes, and 18,500 agricultural producers are engaged in sunflower production.
"Since the beginning of 2024, legal entities have acquired 5,879 land plots with a total area of 16,900 hectares, of which 3,900 hectares were purchased during May 2024. In April 2024, legal entities purchased 4,500 hectares. Therefore, the behavior of legal entities on the land market corresponds to the market trends. Against the background of the general decrease in the volume of the market, the volume of land purchased by legal entities also decreased," stated the message.
As the Ukrainian News agency earlier reported, on January 1, 2024, the land market opened for legal entities.
From July 1, 2021, the law on the opening of the land market came into force.
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