Changes in the land sector

Prozorro.Sale has become an excellent solution for ensuring openness in the sale and lease of land, and we are now witnessing new transformations. So what is in store for us? To begin with, separate procedures have been created for the sale of seized land.

But that's not all: on July 27, 2023, the Parliament supported draft law No. 7588 aimed at the efficient use of state-owned agricultural land. Under the new law, state institutions will sublease such land through online auctions on Prozorro.Sale.

So today we have a closer look at all the recent innovations and explain how they will affect the real estate market.

New Procedures for the Sale of Seized Land

It is no secret that since 2021, the sale of seized land has been successfully carried out through Prozorro.Sale. And now we should note that improvements have been made to the process of selling seized land. Starting from July 18, 2023, all auctions must be announced by the organisers exclusively in special procedures in the following areas:

- sale of seized land;
- redemption of seized land without an auction;
- sale of seized land with a prevailing right.

That is why today we have selected several interesting lots and prepared an instruction to help you successfully organise the sale of a land plot.

Lots That are Already Available

And for those interested in purchasing real estate, the first auctions have already been announced as part of the changes. Here is what is already available:

A land plot of 4.29 ha is located in the Kherson region, Bilozerskyi district of Skhidnenskyi village council. The starting price is UAH 136,850 without VAT. The application deadline is until August 24, 2023.
A land plot of 2 ha located in Dzvinkivskyi village council of Vasylkivskyi (Fastiv) district of Kyiv region. The starting price of the lot is UAH 487,800 without VAT. To participate in the auction, an application must be submitted until August 24, 2023.
The land plot of 0.0250 ha is located in Odesa region, Odesa district, Dachnenskyi village council, on Rozova Street, plot No. 8. The starting price is UAH 15,542 without VAT, and the application deadline has until August 27, 2023.

The sale of seized land helps not only to sell distressed assets but also to restore their successful use. Since July 18, 376 auctions for seized land have already been announced for a total of UAH 315.17 million. These impressive figures indicate a strong demand for such land plots and positive market development.

More on Changes to the Lease of State Agricultural Land

The adopted draft law No. 7588 stipulates that state and municipal institutions and organisations that own more than 100 hectares of agricultural land will be transformed into joint-stock companies with a 100% state share. This also applies to the land that was given to the National Academy of Sciences and the National Academy of Agrarian Sciences of Ukraine.

This initiative allows such institutions to use land plots in the format of sublease, as they were previously in permanent use. It is worth noting that the land will remain in state ownership.

From now on, the newly created JSCs and LLCs will lease land plots and pay at least 12% of their regulatory and monetary value to the state budget annually, and these companies will sublease land through state online auctions on Prozorro.Sale.

The adopted amendments give the Cabinet of Ministers the opportunity to withdraw agricultural land and transfer it to other state-owned enterprises.

We also remind you that the sale of state-owned and municipally owned agricultural land is prohibited under the Land Code.

Interesting figures: thanks to successful auctions for the sale and lease of land on Prozorro.Sale, the budget received UAH 1.43 billion. This amount was received due to the successful completion of more than 5,000 auctions involving 7,971 participants. Here is the list of regions that became leaders in terms of the number of land auctions announced:

- Kyiv region;
- Odesa region;
- Cherkasy region;
- Lviv region;
- Zakarpattia region.

These results may indicate an increase in investment and business interest in these regions, which is driving the industry and contributing to more open and competitive land auctions.

How to Buy the Desired Lot?

Firstly, to participate in Prozorro.Sale auctions, you need to register on the SmartTender.biz platform. After that, you can search for the lots you are interested in. You can also use the step-by-step instructions to take part in the auction.

If you have any questions about the auctions, please contact our support team at 0 800 75 10 10. We are always happy to help and provide the necessary advice for your comfortable participation.

Buy the property you need and win with SmartTender!