In 2023, the price of agricultural land increased again. Several factors contributed to it. Even so, last year’s increase was not as high as in previous years. How much is farmland selling for now?
Agricultural land prices
In 2023, a hectare of agricultural land cost an average of 343.7 thousand crowns. Compared to 2022, this was an increase of 2.9%. The increase was therefore lower than in previous years, and did not even reach the rate of inflation.
Photo: Pixabay
However, the average value of a hectare of agricultural land needs to be examined in more detail. First of all, lower quality arable land and perennial grasses became more expensive. In this case, the increase was 4.8%. There were also differences in the price of land in different districts. The most expensive is around Prague or in the districts of Olomouc, Kolín, Mladá Boleslav and Hradec Králové. Higher prices also applied to agricultural land near the border with Germany, where the interest of German investors increases the price. Even so, agricultural land here is significantly cheaper than in Germany.
Who deals in agricultural land
Currently, mainly the land of smaller owners and also people who have been trading for a shorter period of time and do not want to continue doing so are coming to the market. Today’s buyers of agricultural land, on the other hand, usually plan to keep the land. Either they manage it themselves or they rent it to her. However, something like this makes sense especially in the long term. The yield from the so-called leasehold, i.e. the lease of agricultural land, is on average about 1.5% per year. Combined with the expected rise in the price of agricultural land, this investment makes sense.
Sources of information: https://www.denik.cz/ekonomika/cena-zemedelske-pudy-vzrostla-20240306.html
https://www.idnes.cz/ekonomika/domaci/zemedelstvi-puda-pacht-ceny.A240206_165627_ekonomika_drh
Preview photo: Pixabay
Lenka Strakova
Money has always fascinated me. I will be happy to share my experience with you.
