A new survey indicates that rental prices are expected to increase by 10%, while land prices are set to rise by an average of 6% for 2022. This is according to the Agricultural Land Market Review Outlook Report 2022 published by the Society of Chartered Surveyors Ireland (SCSI) and Teagasc. The survey was based on information gathered from 95 auctioneers and valuers across Ireland.
The report highlights that strong growth was seen in land prices for 2021, particularly for good land, which grew to an average of 17% nationally from €9,381 to €10,962/ac. Due to a strong demand in the property sector, sales activity rose due to the easing of Covid-19 restrictions. The price of all non-residential land, on holdings of less than 50ac also showed significant increases. In Munster prices were up 14%, in Leinster they rose by 12% while the increase in Connacht/Ulster was 5%.
There was a 10% decrease in the average price for poor-quality land as the amount dipped from €5,900 to €5,308/ac last year. The survey outlines that this decline can be attributed to price developments for larger parcels of poor land in Munster and in some parts of Connacht/Ulster.
Rented ground remains to be an attraction in the property market as rents are expected to rise by 10% nationally. The strongest rental growth figures last year were reported in Leinster with prices for silage, grazing, potatoes, and other crops rising by between 18% and 29%
James Lee, chair of the SCSI’s Rural Agency Committee, noted that 53% of agents who took part in the survey reported an increase in the volume of land sold compared to the previous year.