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8/10/2013


Primary Land Market of Ukraine in January-July 2011

 

MyLand - 03/09/2011:

 

According to the information released by the Cabinet of Ministers of Ukraine with reference to the report of the State Agency of Ukraine on Land Resources, during 7 months of 2011 there were sold 1805 land plots and leasehold rights to land plots with the total area of 4.2 thousand ha and aggregate value of UAH 404.27 million. These are land plots of state ownership sold by local authorities and local executive bodies entrusted with the respective competence. To compare: during the same period of 2010 there were sold 2545 land plots and leasehold rights with the total area of 5.6 thousand ha and aggregate value of UAH 679.1 million.

Only 32 land plots and 241 leasehold rights out of 1805 were sold through land auctions. Area of these plots made up 3.5 thousand ha, value - UAH 11.6 million. We would remind that auction is a primary way of alienating public land, and it shall always be applied, with few exceptions. At the same time procedures related to organization and carrying out of land auctions are still to be regulated, and the fact that auctions are held is nothing to be proud of as soon as it is an example of illegal, beyond legal basis, activities of the authorities.

It is rather remarkable that plots and rights sold through auctions in 2011 accounted for 15.12% of all sold plots and rights while their area made up 83.3% of the total area sold and proceeds from auction sale amounted to 2.87% of the period proceeds from alienation of land. In our opinion that may signify, among other eligible things (like sales of developed land to owners of development), that most valuable land failed to find its way to auctions and it was sold in a way which generated less money for local communities than it could have.

To compare: during the same period of 2010 there were siold at auctions 81 land plots with the area of 37.42 ha and value of UAH 26.5 million and 286 leasehold rights to plats with area of 4.7 thousand ha and value of UAH 14.2 million. Here we see that the share of land plots and leasehold rights sold through auctions in 2010 made up 14.42% of all sold plots, their area accounted for 83.92% of all sold area and respective proceeds made up 6% of all proceeds from public land sales. So the figures are nearly the same, only with noticeable deterioration of the share of money raised at auction (it is actually more than 2 times less than in 2010). That may have no significance but it cannot be omitted.

 

Center for Land Reform Policy in Ukraine - 2011

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