Farmland prices rise 11% in 2018
Farmland prices continued to rise in 2018, increasing by an average of 11%, with the pace of price increases accelerating from 5.6% in 2017, a summary of data published by the Central Statistical Office (KSH) shows, state news wire MTI reports.
The average price of arable land was up by 10% last year at HUF 1.487 million per hectare. The price of grassland was also up by 16% at HUF 670,000 per hectare.
The price of vineyards rose 14% to HUF 2.44 mln per hectare, for orchards it was up 15% at HUF 1.86 mln per hectare and for forests, it was up 9.9% at HUF 750,000 per hectare.
Last year around 72,000 hectares of land were sold in Hungary, a similar amount to that traded in the previous years.
Most farmland was sold in Bács-Kiskun county, 7,800 hectares, followed by Szabolcs-Szatmár-Bereg and Békés counties, where 7,300 and 6,100 hectares were sold, respectively.
Data show that 42% of cultivated agricultural land was rented out by owners last year, the share was unchanged from 2017. The share of rentals was 55% for arable land, 42% for grasslands and 21% for vineyards and orchards.
Rental prices for arable land were also up in all counties, rising by 2.6-14.1% compared to 2017. The average rental price of arable land in 2018 was up 6.5% annually at HUF 55,700 per hectare.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.