Land Prices in Ukraine Have Doubled: How Much Does a Hectare Cost After Five Years on the Market?
3 July 00:31
Over the five years that the agricultural land market has been operating in Ukraine, more than 512,800 purchase and sale agreements have been concluded. At the same time, land prices have risen significantly: the weighted average price per hectare increased from approximately 30,000 UAH in July 2021 to 65,800 UAH in mid-2026. These figures are cited in a special analytical review by KSE Agrocenter, prepared for the fifth anniversary of the land market’s opening, according to "Komersant Ukrainian".
How Much Land Has Been Sold in Five Years
The agricultural land market officially began operating on July 1, 2021.
From then until June 2026 in Ukraine:
- 512,800 purchase and sale agreements were concluded;
- 1.154 million hectares of agricultural land were sold;
- the total value of transactions reached 51.4 billion UAH;
- the average plot size per transaction was approximately 2.32 hectares.
For a detailed price analysis, KSE experts used over 420,000 transactions covering an area of 977,100 hectares, excluding transactions with abnormally high or low prices.
How much will a hectare of land cost in 2026?
The report presents several cost indicators that should not be confused.
The average price for the entire period analyzed was 66,398 UAH per hectare.
The arithmetic mean price for transactions concluded in 2026 reached 87,851 UAH per hectare.
At the same time, the weighted average price—which better accounts for the area of the plots sold—was approximately 65,800 UAH per hectare as of mid-2026.
The difference arises because small plots are sometimes sold at significantly higher prices per hectare. They raise the arithmetic mean price but have less impact on the weighted average.
Land prices rose by 119%
When the market first opened, the weighted average nominal price of agricultural land was approximately 30,000 UAH per hectare. By May 2026, it had risen to nearly 66,000 UAH.
Thus, the nominal increase amounted to about 119%.
However, a significant portion of the price increase is attributable to inflation. According to KSE calculations, cumulative inflation from July 2021 to May 2026 was 75.8%.
After adjusting for inflation, the real value per hectare rose from approximately 30,000 to 37,400 UAH in 2021 prices. The real price increase amounted to about 25%, or an average of 4.6% per year.
Did Land Price Increases Outpace Inflation?
Over five years, the nominal price more than doubled, while cumulative inflation was lower.
This means that land not only partially protected the invested funds from the hryvnia’s depreciation but also provided owners with real value growth.
At the same time, the KSE describes this trend as moderate. Real annual growth of 4.6% does not guarantee income for every owner, as the price depends on the region, soil quality, access to roads, plot size, the presence of a tenant, and military risks.
Where the Most Land Was Sold
The Poltava region led in terms of the total area of plots that changed hands.
Over the past five years, the largest areas were sold in the following regions:
| Region | Area of Transactions |
|---|---|
| Poltava | 107.6 thousand hectares |
| Dnipropetrovsk | 94.8 thousand hectares |
| Kharkiv | 89.4 thousand hectares |
| Vinnytsia | 65.1 thousand hectares |
| Kirovohrad | 63.0 thousand hectares |
| Khmelnytskyi | 61.1 thousand hectares |
| Kyiv | 52,6 thousand hectares |
The Poltava, Dnipropetrovsk, and Kharkiv regions accounted for nearly one-third of all agricultural land sold.
Where Land Is Most Expensive
The highest average prices over the entire period of the market’s operation were recorded in the western and central regions.
The leaders were:
- Ivano-Frankivsk Oblast — 139,000 UAH/ha;
- Lviv Oblast — 123.4 thousand UAH/ha;
- Kyiv Oblast — 107,1 thousand UAH/ha.
Land was significantly cheaper in frontline and partially occupied regions:
- Luhansk — 24,9 thousand UAH/ha;
- Kherson Oblast — 30,5 thousand UAH/ha;
- Donetsk Oblast — 37,000 UAH/ha;
- Zaporizhzhia — 37,000 UAH/ha.
Thus, a price gap of more than fivefold emerged between the most expensive and cheapest regions. Analysts cite security risks as one of the main reasons.
Why Smaller Plots Can Cost More
In western regions and near major cities, relatively small plots are common, and they sell for a high price per hectare.
As a result, the arithmetic mean in some regions significantly exceeds the weighted average.
KSE recorded the largest gap in:
- Rivne Oblast — about 42%;
- Lviv Oblast — 41%;
- Zakarpattia — 41%;
- Kyiv Oblast — 40%.
To evaluate large tracts of commercial land, analysts recommend focusing more on the weighted average price, as it takes into account the area of each transaction.
How the War Has Affected the Land Market
After the full-scale invasion began, land transactions effectively came to a halt.
Due to restricted access to the State Land Cadastre and the Real Estate Rights Registry, only about 3,500 hectares were on the market in the second quarter of 2022.
In the second half of 2022, the market gradually began to recover. While approximately 15,000 transactions were concluded in the first quarter of 2023, by the end of the year the quarterly number had approached 30,000.
As of 2026, indicators had returned to a stable level, and the monthly area of land sold generally fluctuates between 20,000 and 30,000 hectares.
How the Opening of the Market Affected Companies
In the initial phase, only Ukrainian citizens were allowed to purchase agricultural land—no more than 100 hectares per person.
Starting January 1, 2024, Ukrainian legal entities whose ultimate owners are Ukrainian citizens were granted the right to purchase land. The maximum area per buyer increased to 10,000 hectares.
Despite concerns about companies buying up land on a massive scale, KSE did not record an abnormal spike in demand. The number of transactions and the area of land sold grew gradually.
The highest level of activity was recorded in the fourth quarter of 2025: nearly 35,000 transactions covering an area of about 70,000 hectares. By early 2026, the market had returned to its usual level—approximately 26,000–28,000 transactions per quarter.
Commercial farmland accounts for the majority of the market
The market is primarily driven by land used for commercial agricultural production.
Over the entire period, it accounted for:
- 57.2% of the total number of transactions;
- 73.3% of the total area sold.
In 2026, their share increased:
- to 60.2% of transactions;
- to 77.1% of the area.
In contrast, the share of land for private farming decreased to 36.5% in terms of the number of transactions and to 18.1% in terms of area.
How Much State- and Municipally-Owned Land Was Leased
The leasing of state- and municipally-owned land through the “Prozorro.Sales” system remains a separate important segment .
To date, through electronic auctions:
- 237,252 hectares have been leased;
- 21,113 successful auctions were held;
- the total value of the contracts concluded was 2.73 billion UAH;
- the average rental rate was 9,090 UAH/ha;
- the weighted average rate was 11,539 UAH/ha.
More than 93% of the land lots offered through the system belonged to local communities.
Rental prices nearly quadruple at auctions
Competition among bidders significantly drives up the lease price.
On average, the final bid price at the end of an auction is nearly four times the starting bid. In other words, the price increases by approximately 300% from the initial bid.
This provides additional revenue for local budgets and allows communities to receive market-based payments for land use.
Where Is It Most Expensive to Lease State-Owned Land?
Over the entire period of electronic auctions, the highest average lease rates were recorded in:
- Poltava Oblast — 15,8 thousand UAH/ha;
- Vinnytsia Oblast — 15.4 thousand UAH/ha;
- Ternopil Oblast — 13.8 thousand UAH/ha;
- Kirovohrad Oblast — 13,000 UAH/ha;
- Kyiv Oblast — 12,2 thousand UAH/ha.
In 2026, some rates were even higher. In the Poltava region, the average rental price reached 20.7 thousand UAH per hectare; in the Ternopil region, 19.5 thousand; and in the Zaporizhzhia region, 18.5 thousand UAH.
