And how many land plots have been sold in Ukraine
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It is prohibited to sell agricultural land in Ukraine. A moratorium has been established on such real estate transactions. This applies to 96% of all agricultural land in Ukraine, that is, 41 million hectares. Of these, 75% are shares that belong to the population.
Politicians say they are extending the moratorium on agricultural trade due to public inquiries. According to statistics, 72% of people are against, but it is possible that such a trend was formed artificially. Many party leaders are critical of lifting the moratorium in order to further receive support from the population in the elections.
It is quite difficult to determine how many land plots are sold by citizens of Ukraine, to find out statistics by regions and prices due to the lack of transparency of the country's market. But you can get answers using the OLX platform. But the ads there are only a part of the options offered on the market.
Ukrainians sell shares: how much and in what areas
According to statistics from VoxUkraine, 52.4 thousand hectares of agricultural land (shares) were offered for sale on the OLX platform, this is less than 1% of all registered shares that are recorded in the State Geocadastre (27.7 million hectares). Most of the ads are presented in the Dnipropetrovsk region: 7.3 thousand hectares are offered for sale there.
The next places in the rating are occupied by Zaporozhye and Kharkiv (respectively, 5.5 and 4.5 thousand hectares by regions). Fewer plots are sold in Chernivtsi and adjacent cities, as well as in the Lviv and Volyn regions (respectively, up to 350 hectares).
According to the collected statistics, more land plots are sold in the eastern and southern parts of Ukraine, and less in the western and northern parts. This is due to the presence of mountains, forests, swamps, which are not suitable for agricultural activities. But the steppes are ideal for growing plants.
Agricultural land prices
In the past 4 years, land prices have decreased by 25%. When the moratorium is lifted, the price per hectare on the market can be approximately from $ 1,500 to $ 6,000, that is, a sharp rise in prices is not expected. According to experts, the indicators will grow slowly.
But now the prices themselves are higher than the normative ones (those that are appointed by state bodies taking into account taxes and rental rates). In 2017, the average cost was UAH 31,000. against UAH 43,000 per hectare on the market. Most of all, the price is in the Lviv region - almost 54,000 UAH, as well as in Kiev and Vinnitsa (respectively, 52,000 and 51,000 UAH).
Although the average market value in the country differs by 50% from the market value, in some regions it differs by 2 times. A striking example is Sumy, Odessa together with these regions, where the value assigned by the state is gradually approaching the average market level.
What determines the cost of land.
There are several hypotheses that explain changes in the price of land for growing plants:
According to the first, the more land plots are sold in the region, the lower the cost per one hundred square meters of land there. Under the same conditions, a large offer lowers the price. Thus, for large plots the price should be lower and the regression analysis confirms this: when the plot is more by 1 hundred square meters, then on average the decrease is 14 kopecks, which is completely imperceptible in prices.
The second hypothesis is the following: the more harvest in the areas, the higher the price of land. In other words, the increase in value is associated with the fertility of agricultural holdings. But here it will not be possible to take into account the manufacturability due to the lack of information. You can use the official state statistics for 2017-2018 and calculate the correlation index between yield and average market prices per hectare and eliminate the influence of such a phenomenon with different ripening rates. Thus, the higher the grain yield, the higher the price of land, that is, the relationship is revealed. But this does not apply to root crops and vegetables.
The third hypothesis points to the following pattern: the more infrastructure facilities are close to the selected site, the higher the price per one hundred square meters. This applies to the proximity of settlements (especially large cities), highways, wells, reservoirs, electricity, railways and other infrastructure. If there are such objects, then the average price for such ads is about UAH 60,000. per hectare of land, and in other cases - about 48,000 UAH. Thus, the hypothesis is confirmed: the better the location of the site, the higher the price.
But there is also another simple rule: the sooner the owners want to sell the land, the less it costs.