On March 31, 2020, the Verkhovna Rada of Ukraine adopted Law of Ukraine No. 552-IX “On Amendments to Certain Legislative Acts of Ukraine Regarding the Circulation of Agricultural Land,” which lifted the moratorium on the sale of agricultural land. Pursuant to this Law, on July 1, 2021, the moratorium (ban) on the sale of agricultural land was lifted, with the exception of state-owned land.

On January 1, 2024, the second phase of land reform began in Ukraine—legal entities established and registered under Ukrainian law were granted the right to purchase privately owned agricultural land. This step was a logical continuation of the phased lifting of the moratorium, which had lasted for over 20 years, even though the moratorium contradicted Articles 14 and 41 of the Constitution of Ukraine—which guarantee the right to land ownership and the right to private property—Article 90 of the Land Code of Ukraine, as well as a whole series of provisions of civil law.

At this time, the following individuals may acquire ownership of agricultural land parcels:

• Ukrainian citizens,

• Ukrainian legal entities established and registered under Ukrainian law, whose participants (shareholders, members) are exclusively Ukrainian citizens and/or the state, and/or local communities;

• local communities,

• the state.

Foreigners will be able to purchase Ukrainian agricultural land only after a corresponding decision is adopted in a nationwide referendum.

Important! Legal entities owned by foreign states for which it is impossible to identify the beneficial owner (controller), or whose beneficial owners (controllers) are registered in offshore jurisdictions or countries on the FATF “blacklist,” are not permitted to acquire ownership of a land plot in any manner.

Like individuals, legal entities are entitled to purchase up to 10,000 hectares. State-owned and municipally-owned land remains off-limits for sale; only privately owned land may be “purchased.”

Actual market activity of legal entities

As of May 2025, following the launch of the second phase of land reform in Ukraine, legal entities had acquired only 1.77% of the total area of land designated for commercial agricultural production. During this period, 148,000 purchase and sale agreements were executed, covering a total area of 442,700 hectares.

Given that the total area of agricultural land used for commercial production in Ukraine is 24.9 million hectares, legal entities have acquired only 1.77% of that total. This indicates that fears of large-scale land purchases by big business following the lifting of restrictions have not materialized—small and medium-sized agricultural businesses have retained access to the market.

Vitaliy Koval, Ukraine’s Minister of Agrarian Policy and Food, reported that since the beginning of 2024, legal entities have purchased 39,200 land plots with a total area of 120,050 hectares. Thus, legal entities own 27.1% of the land transferred under purchase and sale agreements for commercial agricultural production.

Price Trends and Market Impact

Many factors influence the functioning of the land market and the price of land plots, including soil quality and characteristics, the plot’s location, proximity to or distance from frontline territories, and so on. Before the full-scale invasion by Russian troops, the regions leading in land sales were Kharkiv, Kirovohrad, Cherkasy, Kyiv, and Chernihiv. Due to the proximity of hostilities—and also because land registries have been suspended in some regions—these areas have fallen out of the top priority regions for buying and selling land. Currently, the regions leading in land sales are Vinnytsia, Lviv, Khmelnytskyi, Ternopil, and Sumy.

Yes, a full-scale invasion of the country by the aggressor significantly affected the land land in Ukraine. The number of transactions decreased by more than by half: 28,140 deals for the sale and purchase of agricultural land in July–December 2022 of that year compared to 62,754 transactions during the same period of 2021 year.

The opening of the agricultural land market has contributed to an increase in land values. While the average price per hectare was 38,800 hryvnias in December 2023, by March 2025 this figure had risen to 53,100 hryvnias—an increase of nearly 37%. This increases the income of landowners who have decided to sell their land and also expands opportunities for farmers to obtain loans secured by their land plots.

In the more than one year since the market has been in operation, only 0.48% of land intended for commercial agricultural production has been transferred to legal entities. Approximately 2,000 companies participated in the purchases, which demonstrates that the reform is well-balanced and that opportunities for small and medium-sized businesses have been preserved.

Prospects for Development

Legal entities are willing to pay significantly more for land than individuals. This may be due both to long-term plans for agribusiness development and to the need to consolidate their market positions amid rising prices. Prices are rising and will continue to rise due to the devaluation of the hryvnia, and land is the best way to protect money from depreciation.

Although legal entities do not currently dominate the market, they will play a significant role in the future, especially in the postwar period, when stability and economic outlooks will become more favorable for long-term investments.

Experts believe that land prices will rise as a result of land reform. Comparisons with European markets suggest that land prices could increase by a factor of 2 to 2.5 in three years, and by 200% in seven to eight years, reaching levels seen in European countries.

Conclusions

The land market for legal entities in Ukraine is a new but modest segment. Despite having the right to purchase up to 10,000 hectares, legal entities are currently underrepresented, controlling less than 2% of the total area. However, their activity is a powerful driver of price growth, lending, and overall market capitalization. The outlook is promising, especially given the potential for further growth in land values.

‍