Cost of the land in the Kyiv region directly depends not only on distance to the Kyiv city, but also on prestigiousness of the areas; it depends on a purpose of the land, and also on its recreational features.

Illustration 1 Average prices of the land with purpose for residential building in Kyiv area

One of the most developed and popular area is still the area along Obukhiv highway (Koncha Zaspa, Kozin, Pyatykhatky, Blue lake area). Land prices there are the highest and in some places reach up to $30-35 thousand dollars for 0,01 ha. For today the greatest number of cottages of a various classes is located there. To experts' point of view, the sites located Koncha Zaspa will be on sale less and less because the most attractive places are already sold.

Lack of free land that is near to the Dniper River has double meaning. On one hand, the price for the sites that have unique landscape characteristics will continue growing (for today the site have unique landscape characteristics is offered for price of $35000/0,01 ha). On the other hand land that is less attractive in Obukhiv area is more often offered and it can surely affect the prices index growth land price.

Average land price of 0,01 ha with a purpose of agriculture was $700-1000 in that area and for the land with other purposes the price was $4000-15000 for 0,01 ha.

The reason why the land on the Odesa highway (Vasylkyv region) is that there is good road and it means that it is possible to reach downtown of Kyiv very fast and without problems. The price in this area depends basically on a distance to the capital and "Kyiv-Odesa" highway existence. In 2006 the price grew in average for 80-90% in the most attractive settlements of this area. The highest price growth is going to be in Ivankovichy, it will increase in 2,8 times (price for the land plot there is $4000-10000). Depending on the land purpose, average cost of 0,01 ha of land with a purpose of agriculture was $600-900, and for the land with other purposes the price was $2500-5000 for 0,01 ha.

Cottages building were very fast along Boryspil direction. The most perspective area for building was considered Vishenky village located at the left bank of Dniper, downstream from Kyiv along the river. In the year 2006 the prices for land in Boryspil area have increased in 1, 4-2,2 times. Other part of Boryspil area is less attractive for cottage building, but industrial and warehouses complexes development is perspective there. Land prices depending on its purpose were from $1000 (agriculture purpose) $/0,01 ha up to $3000-6000 in the year 2006.

In Boryspil area the land located in a forest belt is almost sold. However this given area is interesting enough for the industrial and warehouses real estate development and the reason for that is presence of labour resources and also Chernigiv and Moscow highway. In the year 2006 the prices for the land have increased in 1, 2-2 times. The greatest growth was in Brovary town. Depending on land purpose the average land price of agriculture purpose for 0,01 ha was $600-900 and for the land of other purposes - $1500-5000 for 0,01 ha.

In spite of geographically close location to Chornobyl, land in Vyshgorod area is in great demand. Owing to the beautiful landscapes, proximity to Kyiv and to the Kyiv water basin and because of there are a lot of the rivers and woods, investors are very interested in this area because the land located in more prestigious areas close to Kyiv was almost sold or has essentially risen in price. From the beginning of the year 2006 land in Vyshgorod area has risen in price in 1,5 times. In 2006 in this area around 300 ha of land was on sale for $650 up to $11000 $/0,01 ha, depending on land purpose and its location.

One of the land markets that were investigated recently is in Makariv region of Kyiv area. Land market in this area has been actively started to operate only for two years ago. Makariv region is perspective enough for cottage building and cottage small towns' development because there is highway to Zhitomir; there are forests; absence or expensiveness of land located close to Kyiv. The price for land with purpose of agriculture is $300-800 $/0,01 ha, with purpose of cottage construction is up to $5000 $/0,01 ha.

Kyiv-Svyatoshin region is still one of the most attractive land sites for the investments. Advantages of this area are available: proximity to the capital, the developed infrastructure, good roads, presence of communications, etc.

The land in Sofia and Peter and Paul Borschagivka areas are in great demand though lately nobody wanted to purchase land there. The rest of the land along the basic transport highways to Odesa, Zhytomyr directions, and also along the Warsaw highway is actively being purchased. Average land cost of 0,01 ha with agriculture purpose was $900-2000, for the land with other purposes - $2500-17000 for 0,01 ha.

Irpin' area basically is presented by spontaneous cottage building and small cottage town of "the Canadian village" business class. Land sites located in Butcha and Lisova Butcha village have the greatest unit weight in general offers' volume of this direction. The reason of it is proximity to Kyiv, well developed infrastructure, presence of access roads, communications; more often the land sites are located in a forest or in immediate proximity to it. Land Sites in Gorenka and Vorzel' are attractive enough.

A tendency is observed that the number of land sites that are exposed for sale in Gostomel' village are increased. It is also necessary to note that the sites located in Irpin' and Lisova Butcha area grow in sale capacity of Kyiv region. Customers pay their attention here to Irpin' of landscape, forest, lakes and that it is close to Irpin' town. Prices disorder along 25-kilometer zone to Irpin' is $5000 for 0,01 ha. That is why in Irpin' area land price is the highest there. The average price for 0,01 ha of land in the regional centre is $8000-13000. Way lower is the price for land in Butcha, Gostomel' and Vorzel'; it is $800 for 0,01 ha of land with agriculture purpose, and $4000-10000 for the land with different other purposes.

Advantages of Borodyanka area are that there are plenty of woods, cascades of d lakes. But there are defects: it is located far enough from Kyiv, the basic transport highway that is Warsaw highway is narrow, and it is not modern. Alternative for the Warsaw highway is railway communication, however potential customers like electric trains transportation.

Experts say that they do not expect global changes in the land market of Ukraine in 2007 because prices for the 0,01 ha of land will continue to grow. In the Kyiv area we can notice deficiency of free land sites that can be given for construction.

Because of active construction of new cottages, big land areas of 10 up to 30 ha will be in demand that are located in picturesque places near the settlements where there are good access roads, closer to the basic highways in 30-40-km zone around Kyiv. Land in Obukhiv area is not interesting for the potential customers; but the land in Odesa and Zhytomyr areas has greater popularity.

It is very difficult to predict the price growth level for the next year. For example, for last two years land price around Kyiv has increased for 80-650%, depending on direction. Market operators expect rise in prices in 2007 not less than for 60-100%.