“Revenues from the lease of state property in 2024 have increased significantly”: Denys Shugaliy
Leasing of state property remains an important tool for filling the budget of Ukraine, allowing effective use of available resources and attracting business to the development of state assets. Thanks to the mechanisms for the transfer of property for rent, the state receives stable income, and entrepreneurs – the opportunity to use premises and infrastructure objects for business expansion. In recent years, this sector has shown significant growth, which indicates the demand for public real estate even in difficult economic conditions.
As notes Deputy Chairman of the State Property Fund of Ukraine Denys Shugaliy, revenues from the lease of state property in 2024 increased significantly, which confirms the effectiveness of this mechanism in the formation of the state budget. During the year, the state received 836 million hryvnias, which is 8.7% more than in 2023. Shugaliy explains this growth primarily due to the increase in the value of assets offered for rent, as well as an increase in the number of signed contracts.
According to him, almost 2,000 new contracts were concluded during the year, although some of the previous contracts were terminated due to systematic non-payment or the tenant’s initiative. However, the overall balance remains positive – the net increase was about 400 contracts.
Shugaliy emphasizes that all state-owned objects are leased through open auctions in the “Prozorro.Prodazhi” system, which allows for transparency and competitiveness of the process. In 2024, more than 1,200 successful bids took place, and the final amount of winning bids amounted to 13.4 million hryvnias, which is 2.5 times more than the starting price of the lots.
According to Shugaliy, among the main balance holders of state property in 2024 were state enterprises, educational institutions and institutions. This confirms that state property is actively used for business development, educational programs and infrastructure projects.
Shugalii draws attention to the fact that the ten largest contracts in 2024 brought 18.6 million hryvnias to the budget every month. He emphasizes that the most expensive lots are mainly located in the seaports of Odesa, as these facilities are of key importance for logistics and exports.
One of the most significant contracts was the lease of the Odesa Bread Products Factory – a large complex of buildings that includes administrative premises, warehouses and a mill. Shugaliy notes that the starting price of renting this object was 224.5 thousand hryvnias, but thanks to the competition of five participants, the final price rose to 1.95 million hryvnias. This made it one of the most expensive lots in the public rental sector.
Another illustrative case, according to Shugalia, is the lease of a small non-residential premises with an area of 35 square meters. m on the territory of the “Okhmatdyt” hospital in Kyiv. He emphasizes that this object caused an unprecedented excitement, because 12 bidders participated in the auction. The starting price of the premises was only 80 hryvnias, but due to high competition, it increased to 120 thousand hryvnias per month.
Shugaliy emphasizes that the largest contribution to the budget from the lease of state property was made by Odesa region, which brought 283.4 million hryvnias. This is the expected result, since the ports of Odessa and Chornomorsk are strategically important logistics facilities. Kyiv (127.5 million hryvnias) and Dnipropetrovsk region (71.2 million hryvnias) also entered the top three.
It is interesting that the largest increase in income was recorded in the Kherson region, which more than doubled its rental income to 216,000 hryvnias. Shugaliy explains that this is the result of the return of business activity to the regions that were partially affected by the war. Donetsk region (+77%) and Kharkiv region (+40%) also recorded a significant increase in rental income, where, despite military risks, entrepreneurs continue to work and create new opportunities for the economy.
If we talk about the number of contracts, Kyiv is the leader – more than 1.9 thousand contracts. Dnipropetrovsk Oblast is in second place (1,080 deals), and Lviv Oblast is third (992 deals). As Shugaliy notes, this is explained by the fact that the capital and Lviv Oblast remain active economic and industrial centers, and Lviv is also a region for business relocation due to its proximity to the border. It is interesting that the Poltava region showed the largest increase in the number of contracts in 2024 – by approximately 20%. This indicates the revitalization of the region’s economy and the growing demand for state-owned real estate among entrepreneurs.
As Shugaliy emphasizes, state rent is not only a way to fill the budget, but also an opportunity to create new jobs, support business and stimulate the development of regions. He notes that despite the war and economic challenges, business continues to invest in state property, and open auctions through “Prozorro.Prodazhi” guarantee fair competition.
He emphasizes that the growth of rental income indicates the effectiveness of this mechanism. Entrepreneurs see a perspective in state facilities, and the state, in turn, receives stable revenues for the budget.
Renting state-owned property also plays an important role in business relocation, as it allows companies to move production and offices to safer regions. This creates favorable conditions for all participants in the process – for the state, for entrepreneurs, and for the economy as a whole.
According to Shugaliy, the trend of increasing revenues from the rental of state property will continue in 2025, as the demand for rent remains consistently high, and the new economic reality requires the efficient use of state resources.
