Land price continues to rise and reaches record high

The price of land has risen further in 2018, reaching the highest level in years. The price increased markedly, especially in the fourth quarter of 2018. This is evident from new figures from the Land Registry.

The average land price in the fourth quarter of 2018 was €65.200 per hectare. With these figures, the average land price in 2018 can also be calculated. This amounts to €60.900 per hectare, which means that 1 hectare in 2018 was on average 2,5% more expensive than in 2017 and 5,2% more expensive than in 2016. In the latter year, the price was €57.900 per hectare.

Price for arable land rises sharply
The arable land price rose from €66.400 per hectare in the first quarter to €73.800 in the fourth quarter of 2018. This means that the price shows an increase of 11%, which is significant. The average price over the whole of 2018 is €68.900 per hectare.

In the fourth quarter, the price for grassland huge (+9%), which brings the price to €59.700 per hectare. This is mainly due to the high price in the east and south of the country. The average for the whole of 2018 is €56.000 per hectare.  

More land was traded in 2018 than in the previous two years. In 2, 2018 hectares of land were traded, compared to approximately 35.700 hectares in 2017 and 2016. Relatively speaking, 34.500% of the total area of ​​agricultural land was traded.

Major regional differences
Land prices show many regional differences. In the East and West regions, the average price fell in 2018. In East, the price was €61.700 per hectare. In addition, 10.300 hectares of land were traded in this area. In the West region, the land price fell by 1,7% to €58.500 per hectare.

In the parts of the country South and North, however, land prices are on the rise. The average price in the North region is €53.700 per hectare, which is a plus of 3% compared to 2017. In addition, 200 hectares more was traded here than in other years. The price of land rose the strongest in South, at 6,2%. The average price for 2018 is €70.600 per hectare. More land was also traded here: 11.000 hectares. 

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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