Agricultural land prices on year 2015. Evolution and analysis of the prices in 2015 classified by the main use and exploitation of the land and for each autonomous Community (regions) of Spain.
On July 2016, spanish Ministry of Agricultural Affairs (MAGRAMA) published his annual survey showing the results of the “Land prices in Spain Annual Survey year 2016” (Encuesta Anual de Precios de la Tierra año 2016). Once again, this document becomes the best reference in Spain regarding land prices research. These studies, which have been done since 1979, summarizes the main results of the annual poll land prices that it is being carried out on november every single year.
For those of you who are interested on more details and deep data analysis, I encourage you to reading the whole monographic study published by the Ministry on its Agricultural Statistical Bulletin. Click here to enter the original resource>>.
1- National evolution on average land price
As you can see on the preceeding chart, we can confirm the recovery of prices started in 2014, after they have reached their lowest point in 2013 when land prices went below the barrier of 10.000 € per hectare.
It seems so, that the down-price period started in 2008 with the real estate crash is finally over. In particular, on the spanish rural property market, this negative period has last more than 6 years.
In any case, if we compare the behavior of the rural property market price with the residential real estate sector, there is a clear analogy regarding the lasting of the negative period, but the intensity of the fallen is way lower on rural properties (around a 10-15% down prices on rustic properties opposite to the sharply 40-50% price collapse of urban and residential properties, according to what experts on urban real estate claim).
b) Land prices classified by types of crop and exploitations (2011-2015). (Source: MAGRAMA)
From the analysis of the preceeding table I highllight the following conclusions:
- Irrigated crops under plastic (protected) continue whith its intense rising of the prices, moving up 4,5% from last year, and with an accumulate increase of 33,3% during the 2011-2015 period, from a price of 129.378 €/hec. to the 172.923 €/hectare as the last official figure registered.
- Outstanding climbing up on strawberries land prices, which have moved up 17,5% on average respect year 2014, leaving the actual average price of the land on strawberry crop in 54.000 €/he.
- Also I have to stand out that the average price for an hectare of olive grove has increased in the last year 6,4%, although irrigated olive oil land has suffered a 5% drop on its prices in comparison to 2014.
- Another crops lands that have moved up their prices on last year have been: rice (+4,5%); irrigated arable land (+2,9%); non citrus fruit trees (+3,4%).
- Rest of the crops haven´t had remarkable variations on prices, keeping their levels similar to 2014, and in general during the whole 2011-2015 period.
- Fields and Grasslands exploitations also have mantained steady prices, with almost insignificant oscillations.
2- Land Price evolution by Autonomous Community in Spain (Source: MAGRAMA)
On analyzing what has happened on agricultural land prices during the last year ine each Autonomous Community (Spain´s geopolitical regions), it is confirmed what we just saw on the crops and exploitations study, depending on the majority use of the land on the different communities.
Therefore, regarding the big four spanish agricultural areas, I can see, that for instance, in the Valencian Community land prices have slightly fallen (-1,4%) due to the descense on citrus prices; in Andalusia they have moved up 5,7% on average, thanks to the rising of under plastic crops (Almería), strawberry (Huelva) and olive grove; in Castilla y León went up 6,25%; in Castilla-La Mancha up 2%; while in the Murcia Community have dropped down 6,3% influenced by the decline on vegetable land prices.
3- Average price by type of crop and exploitation in the Autonomous Communities (CC.AA.) during the last 5 years.
Next, as a summary and compilation of a valuable information, I display one by one charts cointaining land prices of every crop or exploitation for the most important spanish autonomous communities during the last five years, sort by biggest to lowest price.
It is a much more detailed and useful information than the one reflected before on a national scale. You will probably know that there is a huge variety in Spain on land agricultural prices due to the big differences that we have in types of soil, climatology, and other particulars that heavily determine the yield or output, and so on the final price of the agricultural land.
Here I won´t analyze these charts because I consider that their main value will be giving you a basic orientation on crop land prices in some different areas. I assume each reader will use this information on his own benefit.
However, if you are really interested in knowing accurately the price of some specific crop of any town in Spain, or even the market price of any rural property, I strongly reccomend you to visiting our exclusive and unique rural property online appraisal tool, which will give you, in no more than 5 minutes, and in a automatic way, a complete report of the estimated market price of any crop land or rustic property in any town in Spain, even giving you separated values of buildings and agricultural installations. (Go now to Online rural Appraisal >>)
3.1) Non Irrigated Arable Land (Source: MAGRAMA)
3.2) Irrigated Arable Land (Source: MAGRAMA)
3.8) Non irrigated Grasslands (Source: MAGRAMA)
Jaime Picón García de Leániz
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