How Flevoland has become the Gooi of the land market

The land price in Flevoland is head and shoulders above the other averages in the Netherlands. It is listed for the second quarter of this year Land Registry an average of €161.900 per hectare. In the first quarter that was €160.600. Yet there is a good chance that you cannot buy much land in the province for this price, as a tour of those involved shows. Prices of €190.000 or even €200.000 per hectare are mentioned. Are the Land Registry figures correct and why is the increase so enormous? 

The Land Registry: Paul Peter Kuiper
"There is indeed a delay built into the land prices communicated by the Land Registry," agrees Paul Peter Kuiper. He is a real estate and land specialist for rural areas at the Land Registry. "For land prices we work with a rolling average over one year. It is not like with houses, where many transactions take place. Land mobility is relatively low, which means the number of transactions is also low."

In addition to the small number of transactions, there are additional issues: "What makes it difficult for us is that not every transaction in Flevoland qualifies," Kuiper continues. Land is often sold at the same time as the property and buildings. We therefore always check the sales deeds to see whether a purchase price is stated per plot. That is not always the case, so such a transaction cannot be included in the overview."

The real estate agent: Johan van der Slikke
Johan van der Slikke, from Makelaardij Schokland, is also aware that everything is sometimes lumped together in the deed of sale. "You do not pay transfer tax on agricultural land if it remains in use for ten years," he explains. "By lumping everything together in the deed of sale, you can shift part of the surplus value on the property and the buildings to the land. This means you pay less tax. The deed usually mentions a 'bare' land price. The period between concluding the purchase and the actual execution of the deed at the notary varies. This can take a few months, but also a year. Traditionally, May 1 and November 1 are commonly used dates for the transfer. This has to do with the growing seasons. but also the accounting. That is why we always work with a reference date for a valuation."

Is the land market in Flevoland so hectic that a few months can make a difference? Van der Slikke sees that prices are rising rapidly this year, but also that this is a recent development. "Land is the largest scarce asset we have. Moreover, extraction is increasing. It is mainly large agricultural entrepreneurs who buy land, although municipalities are also active in urban or village expansion. Investors have little interest in land at current interest rates They usually give out land on lease. With these interest rates, this quickly becomes uninteresting."

Highest price in Southern Flevoland
Van der Slikke outlines that the price for a hectare of agricultural land increases the further south you go in the province. Something that is confirmed by colleagues. Van der Slikke: "Every dike you cross causes the price to rise, which means that the most people pay in Southern Flevoland. The differences are enormous. We have recently done business for €170.000, but also for €125.000. At the moment, the average level is around €160.000. Exceptional transactions are known, but don't forget that they sometimes include a windmill, for example." According to the real estate agent, it is not surprising that land in the Noordoostpolder is several tens of thousands of euros cheaper. "There is a little less subdivision, but what matters more is the quality of the soil. In some places it is too light to grow certain crops. This makes it less popular."

The financial advisor: Peter Pals
What makes him do it? People often sigh when a farmer buys land for a lot of money. Is it indeed reserved for bought-out farmers with wind turbines, or is there more to it? The time when so-called 'Schiphol farmers' paid the highest amounts in Flevoland is over, say insiders. Peter Pals, financial advisor and co-owner of Farmers Funding & Advies, describes it as follows: "You have two types of people who buy land. On the one hand, there are entrepreneurs with a very good solvent position under their company and who own a lot of land. 100 hectares and two million euros in debt are common property in Flevoland. That offers a strong starting position. The total revenue model of such a company is simply good. On the other hand, there are entrepreneurs with side branches. Windmills, another company or biodigester. Or just a rich woman of course. The revenue model is good here too. They understand entrepreneurship." Pals admits that there is certainly a dose of luck involved.

"A good entrepreneur can finance up to €50.000 per hectare. My rule is that you must own three to four hectares to buy one more. With 100 hectares you can therefore expand the company by 20 to 30 hectares. Not even close. shows that arable farming is currently doing well. A lot of money has certainly been earned in the 2022-2023 season and the near prospects are also good." Pals sees that it is mainly farmers themselves who invest. "Large landowners don't do that. They have the time and money and wait patiently. There are always problem cases when a farmer has to sell his land. That's precisely when they strike. In Flevoland there are even more privateers on the coast. Think of a planned data center or an army barracks. That puts pressure on the market. The climate also plays a larger role. Over the past 25 years it did not matter much where you were located with your company, but now it is playing a role again. Can you irrigate, how much water does it fall and what is the ground like? In Flevoland this is in good order."

Land price doubles again
Pals does not have to think long about the question of whether a land price of two tons can double. "More and more organizations are laying claim to land, just as is happening in Flevoland. This is one of the last areas in the Netherlands where you can still really farm. This is now becoming evident again. The Central Government Real Estate Agency owns a lot of land in the province, but they They are only interested in renting it out for the top price. You cannot simply get existing tenants from their company. A tenant is better protected here than a buyer." Van der Slikke also sees that tenants are staying on their farm. "When the retirement age and tenant compensation were abolished, the motivation to stop disappeared. Despite an aging population in the sector, you see that tenant farmers are staying put. If the agricultural exemption were abolished, you would probably experience a supply peak. This also applies to the Business Takeover Scheme (BOR). and agricultural exemption, although many agricultural companies now have a BV as a legal form. The latter does not apply.

The purchasing land intermediary: Bart Keizers
The fact that only large farmers buy land is refuted by mediator Bart Keizers of 123Koopgrond from Emmeloord. "A smaller player does not want to miss the boat when his neighbor's land comes up for sale. He would rather pay €10.000 extra, while a large entrepreneur is more inclined to wait for a more interesting opportunity. At the same time, waiting to sell land has the paid off in recent years. Just look at the price increases on the land market. But whether this will remain the case is of course the question. Because what will now play a major role are the increased interest rates. The advantage of a company with a lot of land is that the interest costs over more hectares are spread out. The bank looks at this, but at the same time also critically at the returns. Organic companies may have an advantage, as the banks prefer to invest in 'green'. The organic market has now cooled down slightly, so you notice that entrepreneurs are showing less interest. What is happening in the polder is that a group of entrepreneurs has invested a lot in wind energy and is therefore financially strong."

If Keizers had to gauge the land market in Flevoland, the price level currently amounts to €160.000 to prices above €200.000 per hectare. "The former amount applies slightly more to the Noordoostpolder. For the highest amounts you often come to Eastern or Southern Flevoland. The previously mentioned factors play a greater role there, despite the fact that the yielding capacity of the land in the Noordoostpolder can be higher. especially on the west side.”

The real estate agent: Martien van Arendonk
It is not only tenants who continue to farm as long as possible, even owned land does not always go onto the market. This is what real estate agent Martien van Arendonk of Leyten Van der Linde sees. "Especially in the Noordoostpolder, you now have a third or fourth generation farmer at the helm. They have become wealthy families who do not sell the company, but rent it out or lease it. This also happens in the Flevopolder, where land is transferred to the family. "

"The differences between the parts of Flevoland have always been there," says Van Arendonk. "Ten years ago you paid less than a ton in the Noordoostpolder. That was already the case in Eastern Flevoland at the time. If you had asked me then whether it would double, I would probably have doubted for a long time. How many years will the land price be at three ton? ? I have no idea. Quality and scarcity ultimately determine the price. Some entrepreneurs may have enormous excess value, but that doesn't mean much to me. Banks are also increasingly looking at the profitability of the company. The fact is that this province has fantastic entrepreneurs know and they are expanding. From the past they have grown organically, for example through a relocation. They are not only bought out farmers but above all also very good entrepreneurs."

Difficult to form an image
Boerenbusiness took the test himself to gauge the land market in Flevoland and requested ownership information about recently sold plots. This showed that it indeed takes six months for the deed to be executed, which means that the amount is not yet known to the Land Registry. Amounts of €200.000 or more could therefore not be assessed at this time. Price information is known for previously sold lots. Amounts sometimes reach tens of millions. We requested the title deed for one transaction in Zeewolde. The deed states a market-based amount of €157.000, which was paid in 2021. What the exact price is ultimately determines 'the market', as the brokers and experts say. The chance that this starts with a two instead of a one is increasing in Flevoland.