Analysis of the reasons for the decrease in the activity of legal entities after the implementation of the second stage of the land market

Analysis of the reasons for the decrease in the activity of legal entities after the implementation of the second stage of the land market

In April of last year, Ukraine celebrated a historic event - the introduction of the second stage of the land market, opening the way for legal entities to purchase and sell land plots. However, despite this step towards the development of the agricultural sector, there is a significant decline in the activity of socio-economic subjects. Let's look at the main reasons for this zero activity.

The first place should be the uncertainty of the legal position. Restlessness among the business community arose as a result of unconvincing regulation in the field of land relations, which became a restraining factor for investments and participation of legal entities in market processes.

The second reason is the economic difficulties that have arisen as a result of global economic trends and the impact of the COVID-19 pandemic. The instability of the financial and economic situation led to a cautious approach of entrepreneurs to innovations, in particular, to participation in land auctions.

The third factor is the lack of information. Many legal entities do not have sufficient information about the benefits and risks of participating in the land market, which leads to a lack of interest and passivity.

An additional aspect is the instability of land prices, which becomes an obstacle to the formation of clear development strategies. The excessive volatility of the market leads to the fact that many enterprises refuse risky investments in land.

Inadequate state support is also a noticeable problem. The lack of effective incentives and guarantees from the government leads to a feeling of uncertainty, which, in turn, inhibits the activity of entrepreneurs.

In general, in order to increase the activity of legal entities in the land market, it is necessary to solve legal, economic and informational problems, as well as to ensure stability and support from the state.