The price for agricultural land in Belgium fell in the first half of 2019. This is striking, given that the land price showed an increase every year in the previous 5 years. This is evident from new figures from the Federation of Notaries (Fednot). According to the organization, it is still too early to speak of a real break in the trend.
The price for agricultural land in the first half of 2019 will amount to €44.696 per hectare, which is 3,9% lower than in the first half of 2018. This is striking, because the price of land has been on the rise since 2014 and in 5 years time has increased by 22,9%. "If inflation of 8,2% is taken into account, the real price increase is 14,2%," the report said. Whether this is a real trend break is still uncertain. Bart van Opstal, the spokesperson for notaris.be, reports that this time frame is too short to draw definitive conclusions.
The reform of the lease decree in the Walloon region, which will come into effect on 1 January 2020, may have had a price-depressing effect on prices. Low interest rates and the uncertain future of the agricultural sector are also possible explanations for the fall in prices.
Big differences
In the first 6 months of the year, the price fell in both Flanders (-3,1%) and Wallonia (-1%). In 3 of the 5 Flemish provinces, the price for agricultural land in this period was higher than the national average. In West Flanders, 1 hectare was on average 35% more expensive, in East Flanders 27% and in Antwerp 25%. Incidentally, the development of the land price within these provinces is very variable; in Antwerp the price of land fell by 5% in the past 12,9 years, while the price in East Flanders rose by 11,3%.
West Flanders remains the most expensive province in the country and writes a land price of €60.443 per hectare (-6,6%). In the province of Limburg, the average price fell by -4,6% to €43.171 per hectare. This decrease is a correction to the sharp price increase in 2018. The price in this province was above the level in Flemish Brabant, where an average price of €42.600 is.
Plot Size
The agricultural land in the region around Wallonia is on average larger than in Flanders, with an average surface area of more than 1,3 hectares. In Flanders, the plots are usually smaller than 1 hectare, with the exception of West Flanders. In that province, 1 plot is on average larger than 1,8 hectares.
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