First conclusions regarding the land market in Ukraine
In our articles we have repeatedly talked about the land market. We also substantiated our point of view on the expediency of investing money in land, because land is a resource that does not become more.
And so a few months have passed since the opening of the land market (recall that the Verkhovna Rada of Ukraine adopted this law on March 31, 2021) and now we can assess what fluctuations in the land market have occurred and whether they will bring profit.
The main question of this article: “Will investment in land become an alternative to real estate and deposits?”
After the opening of the land market on July 1, the average price of land ranged from $ 2-3.6 thousand per hectare. Rental prices – $ 150-200 ha / year.
The largest share of sold plots is in Kyiv region (over 430). Here – and the most expensive land. Near Kiev (distance 20-30 km), the price reached $ 4.5 thousand per hectare. While, for example, in the Lviv region, the cost per hectare starts from $ 1 thousand.
At the same time, the value of shares will increase annually by 15-20%, judging by the experience of most European countries, experts predict and add that investment in land purchase will now become a more profitable alternative to investment in residential real estate and bank deposits. Thus, those who have invested in the land market will be able to get a good profit in this area.
When investing in housing, the average return is 5-7% per annum. When renting land, the investor will receive 7-10%. If we compare investments in land with a deposit in a bank, the rate on hryvnia deposits is 6-8% per annum, in dollars – 1-3%. These indicators are also inferior to the profitability of the lease of shares.
We also want to remind you that from July 1, 2021, only individuals will be able to buy land. This will last for two and a half years, until 2024, when legal entities will have the right to buy land. By 2024, “in one hand” can be purchased no more than 100 hectares. Then – no more than 10 thousand hectares.
Judging by the dynamics of prices and demand for land in Ukraine, the peak price will fall in 2023-2024, which will provide returns on investments already made.
If you are going to invest money to get a stable income from it, our lawyers will be happy to help you invest on the most favorable terms for you, and make sure that in addition to profit you keep a lot of useful things.
Contact United International Partners for more information.