Land in Ukraine to Rise Significantly in Price: How Much a Hectare May Cost in Three Years

This opinion was expressed during a conference by Oleksandr Chornyi, co-founder of the land investment service Zeminvest, and land investment expert Serhii Kramarenko, Interfax-Ukraine reports.

According to the experts, land remains one of the most attractive investment assets in Ukraine after the market opened in 2021.

Oleksandr Chornyi noted that the value of a hectare of land in the so-called «corn belt» of Cherkasy region may rise from the current level of around $3,000 to almost $6,000 per hectare within two to three years.

Serhii Kramarenko also believes that the current price of $3,500-3,700 per hectare is attractive for purchase, while in a few years such land may cost more than $6,200-6,500 per hectare.

«Over the past four years, land has proven to be one of the most promising assets in Ukraine in terms of investment», Oleksandr Chornyi emphasized.

He added that demand for high-quality land assets continues to exceed supply, while the market remains on the seller’s side.

The experts also pointed to the gradual increase in rental rates. According to Chornyi, if rental yields currently stand at 3-5%, this figure may rise to 5-8% over the next ten years.

In addition, the investment yield of agricultural land is gradually declining due to the increase in the value of the assets themselves. While several years ago investors expected annual returns of 7-8%, today they are buying land even with yields of 3-5%, expecting further growth in rental rates and asset value.