Agricultural land prices in Germany are breaking records. There are no fewer transactions on the market

Ceny ziemi rolnej w Niemczech biją rekordy. Transakcji na rynku nie ubywa

Agricultural land prices in Germany are breaking price records. This does not discourage potential investors, and interest in agricultural land is growing.
Land prices rose most in northwestern Germany – in North Rhine-Westphalia, which is an animal breeding basin, in some regions of eastern Germany, in Rhineland-Palatinate, and also in Schleswig-Holstein.
Last year, 34,709 purchase and sale agreements were concluded. By 4.2 percent the total pool of agricultural land traded also increased.

According to data from the Federal Statistical Office (Destatis), the average purchase price of a hectare of land increased in 2023. by EUR 1,452, or 4.6 percent. compared to the previous year. The average price per hectare from transactions made last year is already EUR 33,363 per hectare. However, there are regions where you have to pay much more for such a plot – reports Agrarheute. And unfortunately, there is no sign that this price gallop will stop.

Price records

Analysts note that farmland values continued to rise last year, reaching new historic highs. As a consolation, however, they add that the price increase is slightly smaller than in 2022 and 2021, when prices jumped by 8-10%. But although price differences between individual federal states are significant, the current rates are still dizzying. Statistics clearly show that agricultural land in Germany now costs at least twice as much as it did 10 years ago. Back then, a German farmer could buy a hectare of field for about EUR 16,000. Over the last 20 years, agricultural land prices have increased almost fourfold.

Where is the most expensive land?

The data shows that land prices have increased most in northwestern Germany – in North Rhine-Westphalia, which is an animal breeding basin, in some regions of eastern Germany, in Rhineland-Palatinate, and also in Schleswig-Holstein. The most surprising is the increase in land prices recorded in Schleswig-Holstein, where Destatis states an increase of a good 20 percent. – up to EUR 45,820 per hectare. In North Rhine-Westphalia, land prices have increased for the second year in a row and are more expensive than in Bavaria. It was found that the price of a hectare there almost doubled – by EUR 7,123 per hectare, or almost 9 percent year on year. As a result, you have to pay an average of EUR 87,236 for a hectare field in North Rhine-Westphalia.

Bavaria was in second place in terms of agricultural land prices. Year-on-year prices there increased by EUR 2,233, or 2.9%. This does not change the fact that the average value of a hectare is already EUR 78,859 per hectare. This is more than twice the average for the entire country, although still €8,377 less than in North Rhine-Westphalia.

In another northwestern agricultural region – Lower Saxony – the price increased by only 506 euros, or only 1.1 percent. Despite this, the average price there is already EUR 48,070 per hectare. Fourth place in the price ranking is occupied by the previously mentioned Schleswig-Holstein with an average of EUR 45,820 per hectare.

Purchases worth 2 billion euros

A minimal price drop of 1.6%, or EUR 550, was recorded, for example, in Baden-Württemberg. Yet the average price per hectare is still above the national average, being EUR 33,944 per hectare.

Despite record prices, the number of land purchase transactions increased by almost 5%. compared to the previous year, said the German statistical office. Last year, 34,709 purchase and sale agreements were concluded.

By 4.2 percent the total pool of agricultural land traded also increased. A total of 61,777 ha changed hands. Approximately EUR 2 billion was left from buyers' accounts on this occasion – a 5.7% increase. more than in the previous year. This is almost EUR 1 billion more than 10 years ago.