Farm Ireland
Independent.ie

Monday 5 December 2016

IAVI survey confirms drop in Irish land values

Published 25/01/2011 | 05:00

Agricultural land is worth €8,000/ac with or without entitlements, according to a new survey from the Irish Auctioneers and Valuers Institute (IAVI).

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It showed that land prices fell across the board again last year.

The highest prices recorded in the survey of non-residential land sales were for land parcels less than 100ac with entitlements in Leinster. These made an average of €9,900/ac, which was 20pc lower than the average for the same category in 2009.

Averages in Munster and Connacht for the same criteria were €9,035/ac and €7,070/ac respectively. The drop from the previous year was 15pc and 21pc respectively.

Land parcels bigger than 100ac in size sold for around €1,250 less in Leinster and Munster. The difference in sale prices for larger land blocks in Connacht was smaller, however, at just €900/ac less.

Difference

While there tended to be little in the prices achieved by land with or without entitlements in Munster and Connacht, the difference in Leinster was much more marked and amounted to more than €650/ac.

However, the premium paid for entitlements has decreased significantly over the past year. In 2009, land with entitlements averaged €1,000/ac more than land without any in Leinster.

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Residential farm sales averaged nearly €2,000/ac more than non-residential sales in the province. This premium was closer to €1,500/ac in Munster and Connacht.

Commenting on the results, the IAVI said that sales of agricultural land have been primarily by farmers buying neighbouring land or joint venture transactions.

"Farmers are more positive about their business than in the previous two or three years. They see a better prospect on being able to repay loans," the IAVI said.

Darragh McCullough

Indo Farming