The Ukrainian Land Market Has Not Overheated Yet: Why Investors Should Consider Investing Now
Interview
While Ukrainians were investing in apartments, deposits, and foreign currency, one of the country’s most conservative assets, namely agricultural land, was becoming a full-fledged investment market. The paradox is that even amid the war, it not only survived but also began to grow steadily.
In the few years since the market was opened in 2021, land in some regions has increased in value by hundreds of dollars per hectare annually. Yet despite this, for most private investors, it remained a “closed-club” market: risks, lack of access to high-quality plots, and above all, the need to manage the asset on their own.
Oschadbank, in partnership with “Tvoie Kolo” company, has recently offered its premium clients new investment opportunities: to purchase a specific plot outright or invest through a mutual land investment fund to receive investment certificates. It is not so much the partnership itself that is important here, but rather the signal it sends to the market: land is gradually shifting from the “for farmers” category to the “for portfolio investors” one. How does this market operate, how much income can be generated, what are the expenditures and risks, who is this asset suitable for, and why is it particularly important right now to include this instrument in an investment portfolio?
Andrii Usenko, CEO of “Tvoie Kolo”, and Yehor Lisnychyi, Commercial Director, in an interview on Oschadbank’s YouTube channel provide a detailed overview of both investment models, the factors influencing land prices, and how the company manages investors’ assets:
Why land is once again in the spotlight for investors
Over the past few years, the agricultural land market has become one of the most attractive investment instruments in the country. The average price per hectare in the most promising regions has risen to $2,500–$3,800, and in some cases, investors have recorded annual returns exceeding 50% in dollars. Despite this, the market remains challenging for individual investors to enter: one must know where to find high-quality plots, how to verify their legal status, and how to properly manage the asset after purchase.
To make it easier for premium clients to invest in land, Oschad has partnered with “Tvoie Kolo,” a company with extensive experience in managing land assets. As a result, clients have two options: purchase a land plot outright or invest through mutual funds by acquiring investment certificates. Which one to choose depends primarily on the amount invested and how much attention the investor is willing to dedicate to their asset.
There are two investment models: direct ownership or mutual funds
The first model involves purchasing a land plot outright. The minimum investment amount is UAH 300,000 for a single plot of approximately two hectares. The investor becomes the sole owner of the specific land, receives lease income, and stands to benefit from the asset’s appreciation. Full control over the property is the main advantage, but it also comes with higher registration costs and greater involvement in the process.
The second model involves mutual investment funds. The company manages the following two funds: “Tvoie Kolo. Annual Income” and “Tvoie Kolo. Reinvestment.” The investor purchases investment certificates and becomes a co-owner of the fund’s land assets in proportion to the amount invested. The minimum investment required is 122 certificates, which as of May 2026 amounts to around UAH 152,000 for the first fund and UAH 162,000 for the second one. Once the initial investment is made, additional investments can be made in increments of one certificate, worth approximately UAH 1,250–1,330 per certificate. This model is well-suited for those seeking a low minimum investment amount, broad diversification, and the lowest possible level of involvement.
Only citizens of Ukraine may invest in land. At the same time, the legislation stipulates a threshold: a single individual or legal entity in Ukraine may own no more than 10,000 hectares of agricultural land.
Factors affecting land value
The price of agricultural plots in Ukraine varies significantly depending on the region and a number of other criteria. The key factor is competition among tenants. In areas where several agricultural producers compete for land, lease rates and plot values rise much faster than in regions dominated by a single player. The more tenants are willing to lease, the better the terms for the owner and the higher the asset’s valuation. This is the key driver of price growth.
The second important factor is security and location. The most expensive land is located in the central and western regions: Poltava, Khmelnytskyi, Vinnytsia, and Kyiv regions. Price growth here reaches $500 per hectare per year. In contrast, prices are lower in border regions and the south due to a combination of security and climate risks.
The term of the lease agreement is also of great importance. Plots with short-term leases – up to 5-7 years – are more expensive than those with leases fixed for 15-20 years. The rationale is clear: a short-term lease gives the owner flexibility and the ability to regularly adjust rates in line with market conditions. Long-term leases “lock in” income for years to come.
Finally, the size of the land plot directly affects the price: a consolidated plot of 20–30 hectares may cost 30–50% more than a separate plot of 2–3 hectares, as agricultural companies are more willing to negotiate with large landowners.
What the income is made up of and what the return is
Income from land investments is made up of two parts: lease payments and growth in the asset’s market value. When purchasing a plot outright, “Tvoie Kolo” makes sure the investor receives an annual lease payment of 4–10% of the land’s value. The estimated total return is 20% per annum in hryvnia. In 2025, the company closed over 40 exit deals with an average return of 23% per annum in dollars net of all expenses and taxes. Some cases, thanks to the short investment term, yielded 58% and over 70% per annum.
The funds performed just as impressively. Over its 21-month run since April 2024, the “Annual Income” fund has delivered a return of +23%, with +16% of that return generated in 2025. In April 2025, the fund paid dividends of UAH 64.55 per certificate after taxes. The estimated yield is 6% per annum in hryvnia from lease payments alone, excluding asset appreciation. The “Reinvestment” fund is focused on long-term capital appreciation: over 19 months, it has grown by 30.71% in hryvnia and 24.86% in dollars. No dividends are paid out here – all lease income is reinvested in new plots, and investors will be paid out when the fund matures in 2033. The estimated yield is 15% per annum in dollars, including capital appreciation.
It is worth mentioning the exchange rate factor. Land in Ukraine is denominated in dollars, so the hryvnia’s devaluation benefits investors: even if the dollar-denominated price of a plot has not increased, its value in hryvnia automatically rises along with the exchange rate. Thus, investors who entered the market when the exchange rate was around UAH 28 per dollar have already secured a significant gain in hryvnia, regardless of the dynamics of the land market itself, with the current rate exceeding UAH 42.
Land Management: What Does “Tvoie Kolo” Offer?
One of the main advantages of a management company is that it completely relieves the investor of operational burdens. “Tvoie Kolo” not only selects plots but also handles all negotiations with tenants, legal support, document processing, and payment monitoring. Currently, the company manages a land bank totaling 13,500 hectares across Ukraine.
The key benefit is a guaranteed minimum lease income, fixed in a notarized contract. If a tenant delays payment or fails to pay, the company covers the difference out of its own pocket. If the actual lease income exceeds the guaranteed level, the investor receives more, while the company charges a commission only on the excess amount.
Increasing lease rates is another important aspect of the company's activity. “Tvoie Kolo” manages not individual plots but a portfolio: it consolidates land within a single tenant, balances contract terms, and negotiates on behalf of all owners simultaneously. This provides real leverage in negotiations. A telling example is a case from 2025: with 21 hectares under a single tenant, the company succeeded in increasing the lease rate by 82%, due to the fact that most contracts had a maturity of up to 5 years, and the tenant was eager to retain the entire landholding.
It is worth mentioning that investors who already own a land plot, whether purchased independently or through another company, have the option to transfer it to “Tvoie Kolo” for management. The company will evaluate the land plot and, depending on its location, the tenant, and the terms and conditions of the contract, will either assume comprehensive management of it with full guarantees or include it in the negotiation pool when the opportunity arises.
Commission fees and taxes: what investors actually get
When purchasing a land plot outright, the initial costs include an 8% commission fee to “Tvoie Kolo” for property selection and legal support of the transaction, along with UAH 10,000 –15,000 in notary service fees. While the land is owned by the investor, the company receives 15% of the lease income; the remaining 85% belongs to the investor. Upon sale, the company receives 15% of the increase in value—that means it gets a percentage of the difference between the purchase and sale prices, not of the total transaction amount. When purchasing mutual fund share certificates, there are no extra initial fees; upon early sale, the broker’s commission is no more than 1%.
Taxes. Lease income from direct land ownership is taxable as regular personal income: 18% personal income tax and 5% military levy. The tenant, acting as a tax agent, is responsible for paying this tax on behalf of the owner, so the investor receives the net amount. When selling the first plot within a calendar year, the rate is 5% personal income tax and 5% military levy on the transaction price. All subsequent sales in the same year are taxed at a rate of 18% + 5%, but based on the difference between the purchase and sale prices. Dividends from mutual funds offer a significant benefit: they are taxed at a 9% personal income tax rate instead of 18%. Once the fund's maturity date is reached, total accumulated income, both from lease and from the sale of assets, will be paid out as dividends at the same preferential rate.
How to execute a transaction and what is the asset's liquidity
Land plots can be purchased remotely, via a power of attorney, with no need for the investor to be physically present at the transaction. The investor provides a passport, tax ID number, and documents proving the source of funds, executes a power of attorney, and the transaction proceeds without their physical involvement through a regional notary at the land’s registration location. After signing the contract, ownership is registered with the State Register of Real Rights. The processing time ranges from a few days to two months, depending on the procedure regarding the tenant’s right of first refusal, which allows the tenant, under the law, to purchase the plot first under the same terms and conditions offered to another purchaser.
The liquidity of direct ownership is lower than that of mutual funds: a sale may require up to 60 days. In contrast, investment certificates may be sold within 2–4 hours through the Univer Capital brokerage on the stock exchange or via the “Tvoie Kolo” customer database. Purchasing certificates takes 10–20 minutes after verification via “Diia” on the Univer.ua platform. Please note: when purchasing certificates worth up to UAH 400,000, proof of income is not required according to applicable laws.
Who are investments in agricultural land suitable for?
Land is an asset for those who plan for at least several years ahead. It is not a tool for quick speculation, but it is well-suited for long-term capital preservation, portfolio diversification, and generating passive income.
Purchasing land outright is more suitable for investors who are willing to be involved to some extent, seek absolute control over the asset, and aim for higher overall returns. Mutual funds are the best option for those seeking a lower minimum investment, broad geographic diversification, and the least involvement possible: no legal procedures, no negotiations with tenants, and no need to monitor the market yourself. Oschadbank Premium clients can learn more about both products and receive personal advice directly by contacting their personal bank manager.
Interview
Oschadbank Press Center