Page 88 - UKRRptFeb24

8.3%. Therefore, the nominal capitalization of the market increased by ₴89.9B ($2.36B), and since the opening of the land market, by ₴179B. and therefore, the land market’s capitalization will increase to almost $50B. That is, the potential credit financing amount could be $17.5B. This, in turn, would make it possible to close the gap in financing in the Ukrainian agricultural sector, which amounts to about $21B, and in this way meet short-term financing needs, as well as investments in recovery and development, analysts predict.
Businesses have entered the land market, buying 68 plots. Since the beginning of the year, when the second stage of land market reform began, legal entities have already purchased 68 plots, the Ministry of Agricultural Policy reported. We note that the new stage of the land reform allows legal entities to buy land. Previously, only “natural persons” had this right. In addition, the limits of land "in the same hands" have increased for both categories - from 100 hectares to 10,000 hectares. As of January 18, commercial entities bought 68 plots with a total area of 216 hectares. The average size of the purchased plots is 3.2 hectares. In Ukraine, plots are generally small, and the average size is up to 10 hectares. Businesses buy land mainly from individuals who bought it during the previous stage of the reform (secondary sale) - 59 plots changed hands in this way. Primary sales are not so popular at the moment. Since July 1, 2021, the moratorium on sale for more than 20 million hectares of agricultural land has been removed. Currently, only about 1% of all agricultural land in Ukraine is in circulation.
Dragon Capital continues its investment in Ukrainian commercial real estate this year. Dragon Capital Property Management invested about $10M in its real estate portfolio in 2023 and plans to do the same in 2024, the company's top manager, Nataliya Kravets, said. In the fall of 2023, the company sold the Pory Roku Business Center to the end customer. Dragon Capital PM manages 28 commercial real estate properties, including 12 business centers, six retail properties, and 10 logistics complexes, with a total area of 647,000 square metres. "Now, we have no plans to sell objects from our portfolio. On the contrary, we are seeking attractive opportunities in privatisation. We are constantly investing in our real estate: we complete the started construction, carry out reconstruction, make repairs and improvements for tenants," Kravets said. She noted that retail properties in 2023 performed very well. "We have zero vacancies in five of the company's shopping malls. In fact, more than 30 new stores were opened in our malls during the year, " the director added.
9.1.5 Retail sector news
Cafes and restaurants increased sales by 30% last year. According to a study by the Ukrainian restaurant automation company Poster, the turnover of catering establishments in Ukraine increased by 30% in the second half of 2023 compared to the same period the previous year; traffic increased by 10%, and the average check increased by 18%. The restaurant segment showed the greatest increase in turnover, with 37%. The average check increased by 23% and traffic by 11%. The coffee shop segment increased its sales by 31%, traffic by 9%, and the average check by 20%. Cafe sales increased by 26%, the average check increased by 17%, and traffic increased by 7%. At the same time, only 44% of the interviewed restaurateurs note that their establishments met their performance expectations last year. For 16% of those surveyed, indicators even exceeded expectations. It is noted that the most challenging
88 UKRAINE Country Report February 2024 www.intellinews.com