Agricultural land in Romania is the cheapest in Europe, according to an Eurostat report. Thus, at the level of 2016, the average price of one hectare of agricultural land was EUR 1,958, while the average in the Netherlands was over 31 times higher, amounting to EUR 63,000 euros. But, things are getting better.
As food production will always be important, Romanian agriculture will develop. The prices of the land will grow, and the use of technology will diversify.
As an effect, the number and value of the transaction will grow.
”Last year, around 100,000 hectares were traded at an annual transaction value of about RON 2 billion. Agricover Credit IFN has funded around 15 percent of the total transactions in 2017, and, as in 2018, we estimate we will exceed this percentage. One of the large agricultural land transactions in the area of 385 ha was financed last year with an amount of EUR 1.5 million in Olt County,” Rekkers said.
According to Rekkers, from the market information we hold as a result of the agricultural land acquisition financing activity, land transactions in the Ialomita and Calarasi areas were made at prices between EUR 5,000 and EUR 10,000 for a hectare. In the Iaşi area they reached EUR 7,000 per hectare, while the land is becoming more and more valuable in Dobrogea, with transactions ranging from EUR 4,000 to EUR 8,000 per hectare, and in Banat, between EUR 6,000 and EUR 8,500 per hectare.
And these prices might be available for few months, the demand continues, and food production will always remain attractive.
BUSINESS REVIEW – JULY 2018