After real estate, agricultural land prices also cool

The buying frenzy is also over in the agricultural sector. Farmland prices barely rose this year. The decline has even started in Wallonia, so that land there is already 26,000 euros per hectare cheaper than in Flanders.

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As with other types of real estate, the period of sharp price increases in the agricultural sector seems to be over for the time being. Agricultural land cost an average of 53,193 euros per hectare during the first six months in our country, according to the new agricultural barometer of the notaries. That is barely half a percent more expensive than last year, without taking into account the high inflation this year (+7.7 percent).

In fact, in Wallonia (-1.4 percent to 37,011 euros) the downward trend has already started. Only in Flanders did the price rise slightly this year (+1.5 percent) to an average of 63,105 euros per hectare. As a result, the difference between the two parts of the country continues to increase: one hectare of agricultural land is already an average of 26,000 euros cheaper in Wallonia than in Flanders. In 2017, that was on average about 20,000 euros.

‘The war in Ukraine also leads to uncertainty in agriculture, causing the market for agricultural land to cool down somewhat’, explains notary Bart van Opstal, spokesperson for Notaris.be. Over the past five years, the average price per hectare of agricultural land has risen sharply: between 2017 and 2022, agricultural land became on average 23 percent more expensive.

West Flanders the most expensive

However, regional price differences are large, also within Flanders. In the first six months of this year, agricultural land was most expensive in the provinces of Antwerp (67,372 euros per hectare) and West Flanders (77,318 euros). In the latter province, agricultural lands are also the largest in terms of surface area (on average 1.9 hectares). Remarkably, in Limburg the average price per hectare rose by +11.8 percent. In Antwerp, the price fell by -5.4 percent. ‘Perhaps a counter-reaction after last year’s sharp price increase (+13%),’ says Van Opstal.

Specific market

‘Agricultural land is a specific market with large price differences per province and even per municipality’, emphasizes Van Opstal. ‘The average price gives a good idea of ​​the general trend, but does not necessarily say anything about a specific plot. For example, land that is not leased is worth more than land that is still under lease.’

Buyers should call on a local real estate specialist for a precise price determination. For example, a notary from the region can estimate the price for the specific type of land that a buyer has in mind.

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