More transactions in agricultural real estate

The agricultural real estate market improved in its entirety in 2017. More trades were made and these were on average for a higher price. This is apparent from the annual report of the Dutch Association of Estate Agents and Valuers (NVM).

The average price for transactions showed an upward trend, for the first time in years. In addition, the NVM reports that companies were sold faster last year (on average within 200 days, almost 2 months faster than in 2016). However, the supply has decreased by 4%.

Agricultural property market
The volume of money involved in the sale of agricultural companies has increased by more than 20%. According to the NVM, this is partly due to the increase in the number of transactions for, in general, expensive dairy farms. "However, the situation of the agricultural sector differs greatly per sector," says Ger Jaarsma, chairman of the NVM, in the press release.

The above is a signal that there is more movement in the agricultural real estate market. Farmhouses and homes in rural areas also sold more in 2017, at higher prices.

Good year
The NVM announced that the Dutch real estate market had a good year. The market was characterized by: more transactions, rising prices and falling supply. It (by the low interest) 'cheap' money made real estate an interesting investment for many parties, the organization reports.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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