After legal entities gain access to land market, its value begins to grow – analyst
The first results of the implementation of the second stage of land reform in Ukraine indicate a significant increase in the sale price of land associated with access to the market for legal entities, Kyiv School of Economics (KSE) analyst Roman Neyter said on Facebook.
According to his information, in the first two weeks of 2024, legal entities bought 73 land plots with a total area of 233 hectares.
"Even with these 73 transactions, there is a certain peculiarity. When purchasing subsidized lands, we have a minimum price equal to the standard monetary valuation of the land. If among all plots sold in 2024, the median ratio of the sale price to the standard monetary valuation is 1.03 (that is, the price is only 3% higher than the standard monetary valuation), then among the plots acquired by legal entities in 2024, the median is 2.09. That is, the sales price is 109% higher than the minimum sales price," Neyter said.
At the same time, the analyst pointed out that it is premature to evaluate such a fact as a "long-term/confirmed effect."
"But the first results indicate that we can see a significant increase in prices associated with access of legal entities to the market of former subsidized lands," he concluded.