Now the average price of 1 hectare of land in Ukraine is $2,500 but it may reach $10,000 in the future.
Oleh Nivyevsky, associate professor at the Kyiv School of Economics and coordinator of the UaFoodTrade research project, said this on the air of Dom TV channel, Ukrinform reports.
Prior to the market launch, land plots of more than 2 hectares could be rented only. The rental price began to rise in 2015 when discussions on market launch or simplification of the moratorium began.
At the first stage of the market, until 2024, only individuals will be able to buy land.
"Therefore, we should not expect a big leap in prices. According to our estimates, a 10% increase at the most is possible now," the expert said.
According to Nivyevsky, now the average price of 1 hectare of land in Ukraine is $2,500.
"It will grow, of course. I think it should double in the next five years ... There is a fixed amount of land as a resource, while the demand for food in Ukraine and around the globe grows. Therefore, the demand for our land price will also increase. Accordingly, the price of land will also rise. The price of land is on an upward trend all over the world. And there is no reason to think that the price of land should drop," the expert explained.
To project value indicators, Nivyevsky suggests considering land prices in neighboring western countries.
"In Poland and other countries, the price is somewhere at the level of $10,000 per 1 hectare ... In order to reach the price of $10,000 [in Ukraine], it is necessary to at least triple the agriculture productivity. Overall, it is possible," he concluded.