Annual total return on agricultural land investment is 25%

Annual total return on agricultural land investment is 25%

Undeniable advantages of land, as an asset, remain its low entry price —$3-4 thousand and high income — from 8% per annum. Considering the capitalization, the projected total annual return gets 25%.

Moreover, land is a low-risk asset that has proven its reliability even during wartime—in the regions where active military actives were taking place, the land was returned to a condition suitable for cultivation. Income from land can be obtained on the first day after purchase, because 97-98% of agricultural land in Ukraine is cultivated by agricultural companies and bring income from rent. The predicted growth in land prices is 70% over the next 3-4 years.

Any land in Ukraine, except state-owned land, can be freely sold and bought starting from July 1, 2021. The biggest type of land in circulation is agricultural land. Until January 1, 2024, only the individuals, who are the citizens of Ukraine, shall have the right to acquire agricultural land and admission of foreigners to the purchase of agricultural land in Ukraine will be possible only after the adoption of an appropriate decision to be taken following the national referendum. There is the limit of land quantity – no more than 100 hectares in one hand. Starting from January 1, 2024, Ukrainian legal entities and individuals will be allowed to buy up to 10 thousand hectares of agricultural land.

As of June 26 this year, 105,173 agreements have been concluded within the agricultural land market and the total area of land sold is 252,200 hectares. The leading regions for land transactions are Kharkiv, Dnipropetrovsk, Kherson, Kropyvnytskyi and Poltava.

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