July 1 marked three years since the land market was launched in Ukraine. This event restored Ukrainians’ property rights to land, opening opportunities for the free sale and purchase of land plots. USAID supported the Government in developing mechanisms for the transparent and effective functioning of the land market. The determination shown in carrying out the historic mission of launching land reform is a source of pride today, as the land market has become an important source of revenue for strengthening the state’s economy.

According to the Kyiv School of Economics, over three years, the capitalization of the land market in Ukraine increased by over 202.5 billion UAH. Land has gained new fair value and has become a source of prosperity, primarily for rural communities.

Since October 2021, the leasing of communal land has been open and accessible to all through electronic auctions on the Prozorro.Sale platform. Since then, 7,918 communal land plots have been successfully leased, bringing communities 594.2 million UAH in annual income.

Over three years of the land market’s operation, the share of local budget revenues from the circulation and use of land in total community tax revenues reached 15%. At the same time, community revenues from agricultural land circulation are gradually increasing: in the first quarter of 2024, communities received over 14 billion UAH in tax revenues, which is 21% more compared to the same period in 2023.

Since January 1, 2024, legal entities have gained access to the land market. As of May 2024, they make up 20% of all land market participants. Land mortgages have become an instrument for attracting investment, and the National Bank of Ukraine increased land liquidity from 0.35 to 0.5 percent.

As of the end of May 2024, 1.34% of the total area of all agricultural land in Ukraine was in circulation. This fully meets pan-European standards and demonstrates market stability. The land market makes the Ukrainian economy stronger and more resilient.