The question of where to best invest your money – in land or residential real estate – is particularly relevant among novice investors. At the “Living on Interest” conference, experts thoroughly examined both instruments, comparing their advantages and disadvantages in a debate format.
This is reported by Finway
Which Asset Dominates Experts’ Portfolios
Specialists who focus on investments in land or real estate primarily form over 80% of their portfolios with the asset they believe in the most. Representatives from the land market – co-founder of the “First Land Investment Fund,” the Zeminvest service, and the Dobrozem market, Oleksandr Chornyi, as well as land investment expert and investor of the Hromadny Fund and ZemliaUA, Serhii Kramarenko – previously invested in real estate, but now their main bet is agricultural land.
“Until 2021, I was the biggest fan of real estate, but after that, I became a fan of land. I no longer invest in anything other than agricultural land since 2021,” said Kramarenko.
Oleksandr Chornyi also noted that this year he completely exited the real estate market and focused on land assets.
Views on the Advantages of Land and Real Estate
On the other hand, Viktor Boichuk, the commercial director of S1 REIT, shared that last year he tried to invest in land but ultimately realized his preference for real estate. Arthur Lupashko, founder of Ribas Hotels Group, mentioned that the main advantage of real estate for him is the ability to control the property, manage it independently, enter or terminate contracts, and receive rental income.
Oleksandr Chornyi made an interesting analogy, comparing the land market to 1995 and the real estate market to 2025. In his opinion, this opens up great growth prospects for land, as the market is only at the beginning of its development. Serhii Kramarenko emphasized that the demand for land significantly exceeds supply, and its value remains undervalued. He also highlighted that investments in agricultural land are profitable due to the potential for exporting agricultural products.
According to Kramarenko, over the past year, the land market has shown unexpected growth, and its potential is far from exhausted. At the beginning of the full-scale invasion, he considered land to be a more profitable investment than housing, as even in crisis conditions, fields remained sown, and harvests were collected.
Regarding residential real estate, Viktor Boichuk identified the following advantages:
- Affordability (investments start from $3,000);
- Easy scalability (even small additional investments increase income);
- Minimal time expenditure;
- High liquidity.
However, both directions have their risks. The main factor affecting investments, according to experts, is the war. Oleksandr Chornyi noted that it is easier for an investor to assess the condition of a real estate object than that of land. Viktor Boichuk added that the primary risk for residential real estate is the lack of tenants and, consequently, income, and to minimize these risks, it is necessary to continuously improve the service.