A Sherry FitzGerald land market report indicates that 2021 saw the strongest rate of growth since the property company initiated these reports in 2013. Results show that land prices increased by 6.4pc year-on-year, giving an average price per acre of €9,400 outside Dublin.
At the end of 2021, the weighted average cost of prime arable land nationally, excluding Dublin, stood at around €11,200/ac.
Associate director Phillip Guckian comments that the gain in agricultural land values across the country comes as no surprise due to “the lack of good land and farms on the open market in the year. This resulted in many instances of competitive bidding, putting an upwards pressure on prices.”
Guckian pinpoints dairy and tillage as the key drivers of demand for land last year, stating that he anticipates that this will continue in 2022 as the price of milk shows no sign of contracting.
“The residential farm sector proved popular in 2021, particularly with young farmers looking to expand with their families, as well as purchasers from abroad looking for space and privacy around their homes. The market also saw strong demand from farmers looking to lease land and good land for grazing,” he said.
Growth was recorded across all quarters of 2021, with the final quarter seeing agricultural land values rise by 1.4pc. Grassland outperformed arable land, but arable ground still maintains its placing at the top of the price list.
LSL News.