News Land prices
German land price rises more than 3 percent
New figures from statistics service Destatis show that the average price for agricultural land in Germany in 2019 rose by 3,7% to €26.439 per hectare. This increase is mainly due to the fact that more agricultural land has been sold in the west of Germany. The average price there is significantly higher than in the east.
In the figures of the statistical service Destatis, a distinction is made between the federal states in western Germany and the federal states of the former GDR (so-called 'new federal states'). The average price for 1 hectare of agricultural land in the west is €38.396 (+1,5%), whereas in the east of Germany it is 'only' €16.270 (+3,5%). For the whole of Germany, the average price is €26.439 per hectare (+3,7%).
The fact that the average price for Germany as a whole has risen faster than in East or West Germany alone is mainly due to the fact that more land has been sold in the West. In that region, 38.988 hectares were traded last year, which is 5,4% more than in 2018† In contrast, in the new federal states of Germany, 2,1% less agricultural land was traded: 45.843 hectares.
Most expensive land in Bavaria
Land is the most expensive in Bavaria, the state with the largest agricultural area. The average price for 1 hectare of agricultural land in this area is €63.649, although the price is therefore 1,9% lower than in 2018. It is striking that the prices within this state also differ considerably: from €24.415 per hectare in Upper Franks up to €114.703 per hectare in Lower Bavaria. In the neighboring state of Hesse, the price is much lower. There, the average price for 1 hectare fell by 2019% in 10,4 to €15.389.
In the east of Germany, land prices were consistently above the level of 2018. The federal state of Thuringia recorded the largest increase: +9% to €11.656 per hectare. The state of Mecklenburg-Western Pomerania has the highest land price in eastern Germany, namely €21.649 per hectare (+4%).
According to the Agriculture working group (Abl), the increase in the average land price is directly related to the entry of investors into the land market. The working group therefore wants strict regulation on the agricultural land market. "Farmers can no longer afford the land as they compete with non-farm investors who continue to drive up prices," the organization said in a statement.
Most land traded in Lower Saxony
Most land in the state of Lower Saxony changed hands in 2019. In total this concerns 12.506 hectares, which is an increase of 15% compared to 1 year earlier. In Saxony-Anhalt and Brandenburg, the share of traded land increased by 3% to 12.170 hectares and 11.750 hectares respectively. In Bavaria, about 11% more land was sold last year: 8.388 hectares.
In contrast, the share of traded agricultural land in the state of North Rhine-Westphalia decreased by more than 17% to 3.013 hectares. Rhineland-Palatinate shows a decrease of about 12% to a total of 3.264 hectares.
Kimberly Baker
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