Expert says after lifting farmland sale ban its price won't exceed USD 500-700/hectare
2011-08-09 15:20:47
The cost of land and its rent in Ukraine will be growing every year, the press office of Dnipropetrovsk Regional State Administration reported citing the Chairman of the State Agency of Land Resources, Serhiy Tymchenko, who held, a seminar on the launch of the land market in Dnepropetrovsk, eastern Ukraine.
"It is estimated that in the first year after lifting a moratorium on farmland sale its price will not exceed USD 500-700 per hectare. But every year the price will be rising," he stressed.
According to Tymchenko, the growth rate of land prices will be influenced by three main factors: development of agroindustrial infrastructure and rural infrastructure, consolidation of lands into large arrays for ease of processing, improving the quality of the soil.
"The faster this process takes place in our country, the faster the price will be rising. But the fact that it will be rising - it's definitely," the official said.
He added that today the cost of 1 ha of farm land in Western European countries such as the Netherlands, France, reaches up to EUR 10,000, the cost of 1 ha of land in Poland, Hungary - EUR 3,000 and above. The quality of the land in these countries is lower than in Ukraine.
Tymchenko said that the government through its decree has increased from 2012 the rate to calculate a regulatory and monetary value of land by 1.7 times.
"If under the regulatory and monetary rate 1 ha of farm land today is worth an average of UAH 11,800 (USD 1 - UAH 7.97), so next year it will cost UAH 19,900. If we take the formula for calculating the rent of land, today the average rent of 1 hectare is UAH 350 and from the new year it will be UAH 600-700," the official underscored.