News Farmland
Few foreign buyers of Bulgarian land
In certain parts of Bulgaria, the prices of agricultural land have increased by about 2020% in 10. "In some of the more expensive regions, land has been sold for 1.800 lev per decare," says Stayko Staykov. That is converted to approximately €9.200 per hectare.
Staykov is president of the Bulgarian Association of Agricultural Landowners. "In times of crisis it is customary to invest in land", he explains the price increase. "Even people from outside the agricultural sector are now investing in agricultural land. There is a group of landowners who previously bought 'cheap' land and are now monetizing it."
This is reported by the Ministry of Agriculture in its agro messages abroad based on information from the sandanski1.com website. By the way, land prices have not risen in all of Bulgaria. In Eastern Bulgaria, the price is stagnating or falling. This is most likely due to a lack of crop yields in this area. "The harvest was significantly better in northern, central and northwestern Bulgaria. This may be the reason for the increased prices for arable land," says Staykov.
He outlines that in some of the more expensive regions, land has been sold for 1.800 lev per decare. That is converted to approximately €9.200 per hectare. A year earlier, the average price was still 1.100 to 1.400 lev per decare (approximately €5.600 to €7.200 per hectare). The association expects the price increase of land to continue in the coming years, with land becoming an average of 5% to 10% more expensive.
Little foreign interest
The uncertainty surrounding the corona crisis has meant that there was little demand for land at the beginning of 2020, while there was a lot of supply. "The market for agricultural land remains somewhat hesitant," says Staykov. Most of the land remains in Bulgarian hands.
Foreign investors are hardly active. "It is especially difficult in these times to run a farm remotely. Moreover, the Bulgarian agricultural sector is not yet fully integrated into the CAP. This prevents foreign investors from buying Bulgarian land." Another important problem is the lack of opportunities for irrigation. Only 100.000 hectares of the total agricultural area can be irrigated.
Jurphaas Lugtenburg
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