Bucharest, November 5, 2024 – RBJ – The agricultural land market in Romania has seen an upward evolution in the last decade. The price of a hectare of agricultural land has increased by 25-40%, reflecting a continuously dynamic demand and improvements in the agricultural infrastructure, shows an analysis carried out by Appraisal & Valuation SA, the company holding the NAI Romania & Moldova brand. Although land prices evolved at different rates by region, all areas saw significant increases over the period 2015-2024.
The average prices of agricultural land in 2024 show an impressive jump compared to 2015, the situation in the eight development regions looks like this: Bucharest-Ilfov remains the most expensive agricultural region in Romania, reaching EUR 12,000/hectare (ha) in 2022, with a an increase of approximately 40% compared to 2015. It is somewhat normal given the proximity to Romania’s largest city.
Western Romania (over 9,000 EUR/ha) has registered an increase of approximately 30% in recent years. In the South-East and South-West they reached 8,100 EUR/ha, with an increase of approximately 35% compared to 2015. In
The North-West (7,600 EUR/ha) and the North-East (7,000 EUR/ha) registered a more modest increase of around 25-30% compared to 2015.
According to the analysis carried out by NAI Romania & Moldova, the main factors that boosted the price increase are:
>>> Investors’ interest in land intended for high-value crops (wheat, corn, sunflower), but also for specialized crops such as vines, fruits and vegetables;
>>> Agricultural infrastructure projects and irrigation investments, which have made certain areas in the southeast and southwest attractive for long-term investment;
>>> Increased demand for agricultural exports, which increased pressure on land prices in logistically accessible areas, such as the regions in the west of the country and those around Bucharest.
“Although they experienced a decade of substantial increases, the prices of a hectare of agricultural land in Romania remain, for the most part, below the European average of EUR 10,578/ha (2022), the only exception being the Bucharest-Ilfov development region.
On the other hand, the availability of some land at a lower price does not mean that it is the best option for farmers, but Romania has many high quality land whose prices are expected to increase in the coming years. Given the climatic situation, marked by recent dry years, growth could be more moderate than in recent years.
At the same time, there are areas where land can be identified at prices of 2-3,000 EUR/ha, where the trading price normally exceeds 10,000 EUR/ha. These exceptions are mostly caused by the low productivity, in most cases the production is equal to zero, the farmers mostly choosing not to work them anymore. There are several counties where such poor areas are identified.
Conversely, opportunities for specialized land and strategically positioned lots will keep the market competitive, especially in regions well connected to infrastructure. Also, the development of road infrastructure and new irrigation projects could increase the attractiveness of some regions that until now were less exploited,” believes Andrei Botiș, CEO of Appraisal & Valuation SA (NAI Romania & Moldova).
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Founded in 2010, Appraisal & Valuation SA (listed on the BVB, under the symbol APP) owns the NAI Romania brand, being one of the market leaders for valuation services and at the same time, the exclusive representative of NAI Global in Romania and the Republic of Moldova. NAI Global is a network of independent commercial real estate companies and one of the largest providers of commercial real estate services worldwide, consisting of 5,000 professionals and 375 offices located in 55 countries worldwide.
The company’s service portfolio includes: real estate valuations, company valuations, valuations of art objects, agricultural land, production farms, storage and production halls, hydro and micro-hydro plants, wind and photovoltaic parks, as well as technical equipment . APP evaluated all the assets of the largest issuer listed on BVB, SPEEH Hidroelectrica SA (symbol: H2O), in the two years preceding the listing and continues the evaluation after the company’s listing.
Appraisal & Valuation SA is a corporate member of the National Association of Authorized Appraisers (ANEVAR), a professional organization of public utility, without patrimonial purpose, which includes authorized appraisers who acquire this quality, under the law.
