Investing in land is a strategically important direction for long-term investors. Land is an inexhaustible resource, and its value often appreciates over time. Investors putting funds into land assets can expect profits from their appreciation, as well as utilize the land for various purposes such as agricultural production, development, or restructuring for residential and commercial projects. Effective land asset management and prudent planning can ensure investors a stable and sustainable income in the future.
In July 2021, Ukraine opened its land market, allowing individuals—Ukrainian citizens—to purchase land plots. Entrepreneurial Ukrainians have appreciated this new investment opportunity, leading to a surge in land investments. Until December 31, 2023, the maximum limit for land ownership by individuals is 100 hectares. However, starting from January 1, 2024, the limit will be raised to 10,000 hectares, and the moratorium on land purchases by legal entities will be lifted.
- The average cost of 1 hectare of land in Ukraine is 55,510 UAH which is around 1500 USD;
- The average size of 1 land plot is 3.04 hectares;
- The average price for 1 land plot is 166,861 UAH which is around 4500 USD.
Due to the war and hostilities in eastern Ukraine, the value of land has shifted closer to the center and west of the country. Lands in Poltava, Cherkasy, Kirovohrad, Kyiv, Vinnytsia, Khmelnytskyi, Ternopil, and Ivano-Frankivsk regions are in high demand. Besides the war, demand is also influenced by the high quality of the land and a favorable climate for agriculture in central and western Ukraine.
If you are considering purchasing land not only as an investment and a source of passive income but also intend to engage in agricultural and farming business, you may be interested in government support programs in the agricultural sector.
Government support programs in the agricultural sector
- State support for farms where the head is under 35 years old (inclusive). “Young Farmers” support program;
- Partial reimbursement (up to 80%) of the cost of breeding livestock purchased for further reproduction;
- Special budgetary subsidy for existing bee colonies (from 10 to 300 bee colonies);
- Partial reimbursement (up to 50% or up to 70%) of the cost of construction and/or reconstruction of livestock farms and complexes, fish farms, milking parlors, and agricultural product processing enterprises;
- Partial reimbursement (up to 50%) of the cost of construction and/or reconstruction of grain storage and processing enterprises;
- Special budgetary subsidy (1000 UAH per head) for keeping young goats, goatlings, lambs, and ewe lambs;
- Special budgetary subsidy (30,000 UAH per head) for the increase in the livestock of cows of own reproduction.
Acquiring land is a responsible and complex action. To avoid mistakes, identify all pitfalls, and prevent scams, it is advisable to consult competent lawyers who will help you with investing in land.
How we can assist you?
- Legal analysis of the land plot.
- Participation in negotiations and assistance in land plot registration.
- Development of an investment project structure or analysis of the proposed one.
- Preparation, analysis, support, and conclusion of contracts.
- Risk analysis and proposals for their elimination.
- Tax structuring of the investment project.
If you are interested in investing in land in Ukraine but are unsure where to start, fear making mistakes, miss legal nuances in documents, or encounter unscrupulous sellers, turn to us for legal assistance.
