Offered: NVM Agricultural & Rural
More urban dwellers, fewer pig farms
More and more people are moving from the Randstad to spatially located homes in the countryside. Meanwhile, agricultural real estate shows a mixed picture. In 2020, the number of dairy farm transactions increased, but the supply of pig farms fell to just 40 farms. This is what NVM describes in the publication 'Real estate market in pictures 2020', an annual summary of the relevant figures in Agricultural & Rural real estate.
The popularity of rural living continues unabated. In 2020, almost 10% of buyers from the Randstad bought a home in the north, east or south of the country. In Southwest Friesland and Southeast Drenthe, the number of buyers from the Randstad has doubled in 5 years. "Working from home due to corona has probably contributed to the continued trend. The shortage on the market is greater than ever, because the supply has almost halved," says Ard Klijsen, chairman of the NVM Department of Agricultural & Rural† Compared to 2019, the price of rural homes rose by 13%. At the end of 2020, an average of 613.000 euros was paid for a rural home. 7.390 rural homes were sold in 2020, an increase of 18%.
Buy-out arrangement
It was not going well for pig farmers last year. Prices for pigs plummeted due to corona and the outbreak of the swine fever in Germany. "In 2020, pig farms could apply for a subsidy if they stopped their business or with a business location," says Klijsen. This Subsidy Scheme for the Remediation of Pig Farms (SRV) was created by the government to reduce odor nuisance in areas with many pig farms and has been expanded due to the nitrogen crisis. "Companies that participate in this scheme are not sold by a broker. This largely explains that the market saw few transactions and registrations last year compared to last year." The supply decreased from 2020 to 55 pig farms in 40. The average selling price was 1.150.000 euros.
The dairy sector also did not have an easy year. After the outbreak of the corona virus, the milk price fell to the lowest level of the past 4 years. The milk price recovered later in the year, but not to the level of 2019 and 2018. "In 2020, 20% more dairy farms were sold than in 2019. The sales price increased slightly to an average of 2.470.000 euros," says Klijsen. Agricultural land prices rose by 2,7% to 63.600 euros per hectare. Land remains a scarce commodity in the Netherlands. Agricultural land around the Natura-2000 areas became more difficult to sell, especially grasslands. When dairy farms have the right nature permits, the chance of successful sales is greater.
Time for the garden
The greenhouse horticulture sector shows a mixed picture, because the corona crisis did not have the same impact on every company. Klijsen: "Companies that supply to the catering industry saw turnover lost. Pot and bedding plant companies actually benefited from people spending more time in their own home and garden." In 2020, brokers sold 26 greenhouse horticulture companies, a slight increase compared to last year. Because the market for fruit growers and tree nurseries is doing well, there was little real estate on this market. The average sales price of a greenhouse horticulture company was 990.000 euros.
Click here for the publication 'Real estate market in view 2020', the annual summary of the relevant figures in Agricultural & Rural real estate.
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