Why Land Prices in Ukraine Are Rising: 3 Reasons for the Increase

In 2026, the price of land in Ukraine surged dramatically: the average price per hectare reached 75.1 thousand UAH. Andriy Martin, Senior Project Manager for Land Reform at the Cabinet of Ministers' Reform Office, explained the reasons for the price increase and whether the current price is justified during a broadcast on LVIV MEDIA.

Why land in Ukraine is increasing in price, even amidst war. Photo: Depositphotos

Why Land in Ukraine Is Becoming More Expensive Even Amid War

According to Martin, there are several main reasons for the increase in prices:

1. Recovery of the Agribusiness Sector After the Shock of 2022. Farmers have managed to establish logistics, new export routes, and return to work. Additionally, revenues from international markets have gradually recovered.
2. Increased Competition for Land Resources. Due to hostilities, some farmers relocated to calmer regions. Since land is a limited resource, the demand for land in these areas also affects prices.
3. Many Transactions Occur at the Normative Monetary Valuation of Land. Each year, this valuation is indexed based on the consumer price index from the previous year, adding an additional 8-10% to the cost.

Read also: Agricultural Land as an Asset: How Much Can Be Earned and What Are the Risks

Is the Price of 75,000 UAH per Hectare Justified?

Andriy Martin noted that the current price of land is justified by market conditions and fixed statistics.

"Any price that a buyer is willing to pay and a seller is willing to accept is justified. We live in a market economy, and this price is not imposed or dictated by anyone. It is the average price based on real transactions made by people and buyers of plots," he added.

After the launch of the second phase of the agricultural land market in 2024, legal entities gained the ability to directly purchase land plots. This also impacted the market, as there was no longer a need to spend money to involve individuals for purchases.

"Ultimately, this money also goes to the seller, meaning the person who decided to sell the plot," says Martin.

Read also: Stop and Think. Expert Discusses the Risks of 'Beneficial' Offers in the Land Market

How Much Does Land Cost in Ukraine in 2026?

As reported by "Opendatabot," the average price per hectare is currently 75.1 thousand UAH, which is 26% higher than the previous year.

The most expensive land is in Ivano-Frankivsk region (an average of 179.6 thousand UAH per hectare). Almost the same price is in Kyiv region — 178.2 thousand UAH/ha. The highest prices are also in Lviv region (153.4 thousand UAH/ha), Ternopil region (120 thousand UAH/ha), and Vinnytsia region (93.4 thousand UAH/ha).

The cheapest land is in frontline and southern regions. In Donetsk region, it is 30.7 thousand UAH/ha, in Kherson region — 38.5 thousand UAH/ha, and in Mykolaiv region — 44.1 thousand UAH/ha.