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Farmland prices up 5.6% in 2017

Farmland prices continued to rise in 2017, increasing by an average of 5.6%, although the pace of price increases was slower than in 2016 when they rose by 22%, a summary of data just published by the Central Statistical Office (KSH) shows.

The average price of arable land was up by 3.7% last year at HUF 1.535 mln per hectare. The price of grassland was also up by 9% at HUF 0.58 mln per hectare. 

The price of vineyards rose 16.3% to HUF 2.13 mln per hectare, for orchards it was up 12% at HUF 1.61 mln per hectare and for forests it was up 12% at HUF 0.68 mln per hectare.

Last year around 73,000 hectares of land were sold in Hungary. The amount was close to that traded in 2015 and equal to one-third of the area in 2016. In that year, some 4% of all agricultural land was auctioned off as the government sold state-owned farmlands. 

In 2017, most farmland (8,400 hectares) was sold in Bács-Kiskun County, followed by Szabolcs-Szatmár-Bereg County, where 7,900 hectares were sold. Farmland sales were down in all counties compared to 2016.

Data shows that 42% of cultivated agricultural land was rented out by owners last year, unchanged from 2016. The share of rentals was 55% for arable land, 42% for grasslands and 21% for vineyards and orchards.

Rental prices were also up in all categories, rising by 3-8.6% compared to 2016. The average rental price of arable land in 2017 was up 5.8% annually at HUF 52,300 per hectare.