What does the land market in the west of the Netherlands show?

The land price in the west of the Netherlands (Western part of the country) has fallen by 7%, according to new figures from the Land Registry. This is striking, given that the price rose sharply last quarter. Where does this price change come from?

The land price in the West part of the country fell from €64.100 per hectare in the fourth quarter of 2018 to €59.300 per hectare in the first quarter of 2019. Mobility has also increased by 4%, according to the report. the Land Registry† The decrease ensures that the average land price is slightly closer to the annual average of 2018 (€57.500 per hectare).

no drop
Inquiries with local real estate agents show that the land price has not fallen or fluctuates strongly. They expect the decline in the first quarter to be mainly caused by more transactions in areas with a lower land price. "For example, it could be that there have been more transactions in the peat meadow areas," says Jakko Bregman, broker at De Dijken.

Bregman reports that there is a lot of demand for land on which various crops are possible. There is also some demand for grassland here and there, although this is decreasing. "I suspect that the balance between supply and demand in grassland will stabilize in the short term. The demand for soil suitable for different crops will probably remain good for the time being."

This is because livestock farmers are willing to exchange the land with flower bulb growers or arable farmers. "However, they must retain sufficient land, because of the requirements regarding land-relatedness. As a result, there remains sufficient demand for land, also in the livestock farming areas. It is true that flower bulb growers have more room for maneuver than livestock farmers, so that you see a shift in the acreage. Amounts of €85.000 to €100.000 is quite a price for livestock farmers."

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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