The Ukrainian land market was launched in July 2021, which made it possible for Ukrainian citizens to purchase land plots for investment purposes as well as agricultural businesses. Is there a legal way for the foreigners to invest in the black soils of the European Breadbasket as well?
HUSPI IT Consulting & Development partnered with a Ukrainian law firm Svarog Law to provide legal support for foreigners to become players in the field of the Ukrainian land market.
What types of investments are possible?
There are three major ones:
- Buy & Do Business Investment – Ukrainian rich black soils are one of the best in the world harvest-wise. Considering the costs of doing business in Ukraine and the sheer amount of available land, this is a perfect combination for agricultural businesses.
- Buy & Rent Investment – considering the prices for land as well as renting prices, the starting ROI is 5% and more.
- Buy & Sell Investment – the forecast for land cost increase within the next 3 years is around 70%, therefore now is the time to purchase land, even if you don’t plan to do agricultural business here.
Why invest in land real estate?
- It is less risky than startups or cryptocurrencies that are here today and might be gone tomorrow.
- It is a physical asset, which you can rent out, sell, gift, or keep.
- It is profitable whatever path you take in terms of the investment model.
- It has a huge potential for growth as demonstrated by land markets in other countries, such as the Netherlands and Lithuania, for example.
Lithuania’s land market became available for foreigners in 2014 and the land prices increased 12 times since then:
In the Netherlands, the land market is one of the most open in Europe and as a result, the prices per 1 hectare are the highest in Europe as well, as you can see on the graph below:
Why the land market is good for the country? Efficient land markets, throughout history, have shown that it is important to have competition in this area since it positively affects macroeconomic growth, country development, and higher income for businesses in general.
Check out this graph by Robert Mahoney, Peter Dale, and Robin McLaren from their work on Land Markets – Why are They Required and How Will They Develop?
What services does Svarog Law provide to foreigners looking for investment opportunities?
We provide consulting services in case you want to find out more about the legal purchase of land in Ukraine.
Land Plot Search
We search for the land suitable for your particular goals – whether agriculture or simply renting it out.
We provide legal support during the purchase process to ensure the legality of the transaction.
Communication with Landowners
We communicate with farmers and neighbors as well as landowners to make sure the deal would be a success.
Economic Property Evaluation
We evaluate the cost of the land and present you with all the required documentation regarding the prices.
Infrastructural Land Evaluation
We evaluate the infrastructure of the land and access ways to ensure your business venture’s efficient work.
Registration & Documentation
We create and register all the documentation required by Ukrainian law for the land purchase.
Physical Land Visits
We can take you to check out the land plot for yourself or send you all the necessary information about it.
Frequently asked questions about investment
How do I get started investing in land?
There are many ways, but here is the standard flow:
- Understand what is the purpose of the land you want to invest in. For example, it may be for sale (i.e. you purchase the land with the goal to sell it in the future) or it may be for business purposes (i.e. you are planning to plant something or breed livestock).
- Find a good legal partner to make sure you’re covered in that area and that you have all the necessary documents to allow you to perform the activities you have planned.)
- Find the property that fits your requirements and wants.
- Purchase the land.
- Rent it out / do business / sell it and increase your ROI.
Is it wise to invest in buying land?
Considering that the amount of land is limited (until we conquer other planets and solar systems), investing in the land, when or if you have the opportunity to do so, is a wise decision because it will continue to grow in demand as the population of the Earth increases.
War notice: We still stand by the fact that Ukrainian rich soil is still among the best in Europe, it is wise to look for the location now, but pause with personal visits to the land while the war is going on. In the meantime, you can support Ukraine wherever you are and #StandWithUkraine because it is incredibly important for this war to end soon.
Find your land plot in Ukraine together with the Legal Hectare project.