In May 2024, the prices for the purchase and sale of agricultural land in Ukraine reached new heights, setting a record for the entire time of the existence of the land market. At the same time, real market prices may be much higher than official data. This is evidenced by a study by the Kyiv School of Economics (KSE).

According to KSE, the weighted average price of a hectare of land in May amounted to 45 thousand hryvnias, which is 8.2% more than in April 2024, and 5.6% higher than in March of the same year. This indicates a stable increase in prices for agricultural land in Ukraine.

Analysts note that in May 2024, prices for agricultural land reached the highest level for the entire time of market operation. Land intended for commercial agricultural production was even more expensive, reaching 46.2 thousand hryvnias per hectare.

However, real market prices can be much higher, since most deals are concluded at a price that differs only slightly from the regulatory monetary assessment. This indicates the potential for further price growth in the market.

Agricultural land prices vary significantly depending on the region. For example, in the Ivano-Frankivsk region, the weighted average price for land is 78.9 thousand hryvnias per hectare, which is the highest indicator among all regions. At the same time, this indicator is the lowest in the Zaporizhzhia region and amounts to only 30.2 thousand hryvnias per hectare. These differences can be explained by various factors, such as soil fertility, the level of economic development, the availability of infrastructure and the investment attractiveness of the regions.

KSE experts also note that although there was a slight decrease in prices in April 2024, this did not affect the general trend of increasing agricultural land values ​​in May. However, they do not predict the long-term nature of this growth, taking into account possible economic fluctuations.

Since the beginning of 2024, average land prices have remained significantly higher than in previous periods. This is due to the opening of the land market for legal entities in January 2024, which caused structural changes in the market and an increase in the value of agricultural land.