The rent of land has doubled





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03.06.2010 11:08
The average rent for land at the beginning of April 2010 reached 278.3 UAH / ha, which is twice more than the corresponding date in 2007.
The average rent for land at the beginning of April 2010 reached 278.3 UAH / ha, which is twice more than the corresponding date in 2007.

Thus, the average annual growth rate of the average rent for agricultural land since 2007 is 25,5%. These data calculations of experts "Ukrainian club of agrarian business" (ASTP).

As the Liga`s press service ASTP, regulatory monetary valuation of land in Ukraine - the only official indicator of the value of agricultural land - over the same period grew at an average of 7.8% annually. As a result, the average rental rate of agricultural land has increased from 1.47% to 2.49%.

"This increase in rental rates, not least due to the administrative influence of the state. After the signing of 19 August 2008 the President of Ukraine by decree, the organs of the State Committee require the registration of lease agreements to lease rate was not less than 3% of the normative monetary value of the land" - commented Team Leader ASTP Vladimir Lapa.

"However, the increasing interest of foreign investors in the agricultural business and the high ambitions of Ukrainian agricultural holdings to expand its land bank in recent years, too, have identified a positive impact on rents," - he added.

However, the calculation with landlords mainly conducted in-kind (about 72%), ie agricultural products.

But according to a study ASTP "largest agricultural companies in Ukraine: the efficiency and competitiveness", the amount of rent differs by regions. "The reasons lie both in soil fertility and agro-climatic conditions for crop production, - the expert emphasizes ASTP Roman donuts - and the degree of concentration of powerful agribusiness companies in a given region."

Recall that according, for the period 1 May to 1 June 2010 the cost of land for cottage development in the Kiev region (11 regions) grew within 0.39% ($ 16) to $ 4,043 per weave.
zagorodna.com
Content tags: land
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