The Cost of Industrial Land for Factory Construction is Rising in Ukraine
In Ukraine, there is an increase in prices for industrial land designated for the construction of production and logistics facilities. The active demand for such plots is driven by national and international construction material manufacturing companies preparing for large-scale post-war reconstruction of the country. Many of them are already considering opportunities to acquire industrial or logistics land where they plan to locate their facilities.
This is reported by AgroReview
Demand in Western Ukraine and the Impact of Relocation
A significant portion of the demand is concentrated in the western regions—from Vinnytsia Oblast to Transcarpathia. One of the most attractive locations is Khmelnytskyi, where logistics terminals of companies such as ATB, Nova Poshta, and Epicenter are located just 500 meters apart.
The relocation of businesses from temporarily occupied territories is also influencing the increase in demand. Among the relocated businesses, mining companies prevail, choosing plots tied to mineral deposits. For example, in Ivano-Frankivsk Oblast, one such company is looking for land to build a factory for producing dry construction mixtures. The French group Saint-Gobain has already invested 11 million euros in the construction of a plant near a gypsum deposit.
Price Dynamics and Market Features
Manufacturers strive to locate their enterprises near large agglomerations where the workforce is concentrated. For exporters, proximity to the state border is an important advantage. The optimal size of plots for production facilities is 3–6 hectares, while for logistics complexes, it is from 10 hectares.
“The most expensive industrial lands are concentrated in Lviv Oblast due to limited supply and challenging terrain. For instance, in the suburbs of Kyiv, prices start at $10 per square meter, while in Lviv, they start at $2,000.”
The increase in the cost of industrial land is primarily noted in Western Ukraine, driven by both high demand and a limited number of suitable offerings in the market.