Land prices will continue to rise in Ukraine in 2025

In 2025, land prices in Ukraine will continue to rise, especially in the central regions, due to the limited number of suitable plots and increasing rental costs.

 

In the coming years, the cost of land may increase by 20%, because since the opening of the land market in 2021, a hectare of land in Ukraine has already risen in price from UAH 39,000 to UAH 46,000. The increase in land prices will be facilitated by the limited number of land plots against the background of mining or contamination due to hostilities.

 

It is expected that the revision of the normative monetary assessment and auctions for the lease of state lands will lead to an increase in rental rates. The increase in agricultural producers' profits will also increase the demand and prices for land. But the main factor influencing prices will remain the security issue. Currently, the war in Ukraine is significantly affecting the value of land in different regions. Thus, in zones of active hostilities or near the front line, demand and prices for land are decreasing, while in relatively calm regions, prices remain stable or are increasing. The end of the war and the stabilization of the economy will increase investments in the land market, which will contribute to the growth of land prices.

 

As of November 2024, the average cost of 1 hectare of land in Ukraine was UAH 50,475 thousand. The most expensive plots were sold in Ivano-Frankivsk (UAH 171,432 thousand/ha) and Kyiv (UAH 107,964 thousand/ha), while the cheapest land was sold in Zaporizhia (UAH 26,806 thousand/ha), Chernihiv (UAH 29,196 thousand/ha) and Sumy (UAH 29,739 thousand/ha) regions.

 

In 2024, the general price trends in the land market remained the same as in 2023. Theoretically, the value of land will continue to grow, but only time will tell how it will actually be.