Prices of farmland rose 22% in 2016

Farmland prices rose by an average of 22% in 2016, faster than in the preceding two years, a summary of data published by the Central Statistical Office (KSH) shows.

The average price of arable land was up 25% last year at HUF 1.3 million per hectare. The price of grassland was also up 8% at HUF 0.52 mln per hectare. The price of vineyards rose 17.5% to HUF 1.83 mln per hectare, for orchards it was up 8% at HUF 1.44 mln per hectare, and for forests it was up 10.5% at HUF 0.61 mln per hectare, according to a summary by national news agency MTI.

Last year around 232,000 hectares of land were sold in Hungary, some 4% of all agricultural land, as the government auctioned off state-owned farmlands. The amount sold was three times higher than in 2015.

Data show that 42% of cultivated agricultural land was rented out by owners last year. The share of rental was 55% for arable land, 42% for grassland, and 21% for vineyards and orchards. Rental prices were up in all categories, rising by 7-15% compared to 2015.

The average rental price of arable land in 2016 was up 8% annually at HUF 49,000 per hectare.

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