The total value of contracts concluded as a result of land auctions in the state electronic system Prozorro.Sales since 2021 has exceeded 10 billion hryvnias. This is the cumulative price determined at the auctions for the sale and annual lease of land plots of various purposes.
This is reported by Finway
Market structure and key participants in land auctions
Since the beginning of the land reform, more than 4,300 organizers – including local communities, the state project “Land Bank”, private executors, and landowners – have announced land auctions through Prozorro.Sales. A total of 37,000 plots have been sold in the system, including leases, sales of private agricultural lands, and seized plots. The sale of state and communal agricultural lands remains prohibited under current legislation.
The highest price at the auction was achieved for a recreational plot of 1 hectare located in the Zhytomyr region: the Zhytomyr City Council sold it for 106 million hryvnias. Among the agricultural lands leased, the leader is a 4,000-hectare area in the Kirovohrad region owned by the Land Bank. The auction winner pays over 65.5 million hryvnias annually for this land.
“Land auctions in Prozorro.Sales have shown the main thing: when access to assets is open and the rules are the same for everyone, land starts to work more efficiently. It is essential for us that the system provides transparency at every stage – from the announcement of the lot to the final price,” emphasized Deputy Minister of Economy Denys Bashlyk.
Growth of competition and revenues from land auctions
According to Serhiy But, CEO of Prozorro.Sales, land auctions have become a sustainable tool for replenishing the budgets of communities and the state. This area ranks among the top five in terms of revenue generated in the Prozorro.Sales system. Since its launch in 2021, both the volume of trades and the level of income have shown consistent growth.
On average, three participants compete for each land plot of various purposes, while some lots attract more than fifty bidders. Two-thirds of the auctions in the system are for agricultural lands – totaling 28,300 trades. Next are plots for public development (3,100), industry, transport, and communications (2,200), water fund (1,800), and residential development (1,100).
According to data from the public analytics module bi.prozorro.sale, the leader in the number of trades and revenues from the sublease of agricultural lands is the “Land Bank”: winners of nearly a thousand auctions pay about 1.1 billion hryvnias annually. The top three organizers with the highest volume of attracted funds also include the Buryn community in Sumy region (36 million UAH per year) and the Oknyan community in Odesa region (30.6 million UAH annually).
According to the General Director of the State Land Bank LLC, Yaroslav Yaroslavskyi, the average rental price for state lands through the Land Bank auctions is 19.7 thousand UAH per hectare, with the highest bids recorded for two plots in the Lviv region – 71 thousand and 61 thousand UAH per hectare per year.
The project of the State Property Fund of Ukraine “Land Bank”, aimed at creating a transparent and efficient market for the use of state agricultural land, has been implemented since 2024. The first auctions for the sublease of such lands started in October 2024 through Prozorro.Sales. In total, subtenants have already paid over 2 billion hryvnias to state and local budgets.