Rising farmland prices present owners with complex decisions. Learn which factors determine the value of your land and how to achieve the best selling price or lease rate based on data. A well-founded appraisal is your first step to success.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
The average price of farmland per square metre in Germany was approximately €3.19 in 2022, with significant regional variations.
Factors such as soil quality, location, demand from investors, and competition for use (e.g. for renewable energies) drive prices.
A professional, data-driven appraisal is essential to achieve the optimal price for your farmland; Auctoa provides impartial analyses for this purpose.
The price of agricultural land per square metre in Germany has shown a significant upward trend for years. In 2022, the average price was around 3.19 euros per square metre, with substantial regional differences. This development offers opportunities but also poses challenges for owners, heirs, and investors. Understand the complex influencing factors from soil quality and regional demand to global market trends. This article provides you with the necessary insights and strategies to accurately assess the value of your agricultural land and make informed decisions. With knowledge of current key figures and forecasts, you can navigate confidently through the dynamic agricultural market.
Understanding the current price dynamics for agricultural land
The German farmland market is experiencing a significant price increase. Between 2002 and 2022, average prices rose by over 235 percent.
In 2022, buyers paid an average of 31,911 euros per hectare, which is equivalent to 3.19 euros per square meter. This development highlights the growing importance of farmland as an investment and a production factor.
The valuation of agricultural land therefore requires a precise analysis of current data.
For an accurate assessment of your specific property, a professional Auctoa valuation or a chat with our ImmoGPT can offer valuable guidance. However, the price trend is not homogeneous but heavily dependent on regional conditions.
Regional Price Differences: Where Farmland is Most Expensive
The prices for farmland vary significantly between the federal states. Regional differences are often substantial.
In North Rhine-Westphalia, the price per hectare averaged 80,113 euros in 2022 (approximately 8.01 €/m²). This is a peak value.
Conversely, the price in Thuringia was only 12,016 euros per hectare (approximately 1.20 €/m²), illustrating the vast range.
Bavaria and Lower Saxony also have high average prices, often between 45,000 and 65,000 euros per hectare. These regional differences of up to 68,000 euros per hectare highlight the necessity for a location-specific analysis.
Knowing the local property prices is crucial. Such price ranges significantly influence sales and lease decisions and require careful consideration of local market conditions.
Main drivers of price development for arable land
Several factors significantly influence the price of farmland per square metre.
The limited availability of farmland amid rising demand is a major price driver.
Between 1992 and 2022, the area used for settlement and transport increased by 1.16 million hectares. This often came at the expense of agricultural land.
The demand from non-agricultural investors also drove prices up. Today, over 50% of agricultural land belongs to non-farmers.
The promotion of renewable energies, especially for biogas and photovoltaics, creates additional pressure on land use. A detailed analysis of the valuation factors is essential.
These complex interactions make continuous market observation necessary.
The following aspects are particularly relevant:
Soil quality: Higher soil ratings (agricultural ratings) generally lead to higher prices.
Location and accessibility: Proximity to urban centres or good transport links increases value.
Regional demand: Competition from other farmers or investors drives up prices.
Lease prices: High lease prices often correlate with high purchase prices.
Usage competition: Land requirements for settlement, transport or renewable energies.
Capital market development: In the past, low interest rates made land an attractive investment.
These factors must be considered in any valuation of properties to achieve realistic prices.
The role of the standard land value in price determination
The standard land value is an average locational value for land per square metre.
It is determined by expert committees and serves as a guide for the farmland price per square metre.
Standard land values for farmland often refer to a specific average plot size and remaining lease term.
It is important to note that the standard land value is an average value for a zone. Individual property characteristics such as soil quality or plot layout are not fully represented.
Deviations from the standard land value are therefore the rule, not the exception.
A precise assessment requires detailed information on the standard land value and its correct interpretation.
The BORIS-D platform provides a nationwide overview of standard land values. The specific characteristics of your property can significantly affect the actual value.
Impact of leases on the price per square metre
Existing lease agreements have a direct impact on the achievable sale price of farmland.
Long-term leases with low rental rates can decrease the value. Conversely, attractive lease conditions can increase the price.
The average lease prices in 2023 were 357 euros per hectare. This is an increase of 9 percent since 2020.
In sought-after regions, lease prices of over 800 euros per hectare are even achieved.
The remaining term and the amount of the lease rate are crucial indicators in the evaluation.
When selling inherited farmland, a thorough review of the lease arrangements is essential.
A professional assessment by Auctoa takes these aspects into detailed consideration. The lease yield is a crucial decision-making factor for many buyers.
Forecast: Future Development of Arable Land Prices
Experts anticipate a further increase in farmland prices in the coming years.
Forecasts for 2025/2026 suggest average prices of up to 35,000 to 38,000 euros per hectare.
This corresponds to a price per square metre of 3.50 to 3.80 euros. The ongoing scarcity of land and competition for use are the main reasons for this trend.
Experts from the Thünen Institute expect that by 2030, around 300,000 hectares of agricultural land could be lost.
This scarcity will continue to drive demand and therefore prices upwards.
A strategic market analysis for plots helps to identify optimal selling times.
The long-term value development of farmland thus remains positive but requires careful monitoring of market factors.
Key trends influencing future prices:
Land availability: Further decline due to residential building and infrastructure projects.
Sustainability requirements: Possible restrictions or support for certain types of management.
Agricultural policy framework: Changes in EU agricultural subsidies (CAP).
Climate change: Impacts on yield potential and regional attractiveness.
Investor demand: Continued interest from non-agricultural buyers.
You should keep these developments in mind when planning the sale of plots.
ackerland-preis-pro-quadratmeter
To achieve the best price for your farmland, a well-thought-out strategy is necessary.
A professional valuation report is the foundation. This is the first step.
An initial assessment can be made by the experts at Auctoa or via our ImmoGPT chat.
The preparation of complete documentation is essential. This includes current land registry extracts and lease agreements.
Identifying the right target group, whether farmers or investors, influences the marketing strategy.
A transparent depiction of all value-influencing factors builds trust with potential buyers.
Assessing development potential, for example, for solar systems (considering legal frameworks), can further increase the value. A clear positioning and professional presentation are key to success.
Conclusion: Make informed decisions based on precise data
What is the difference between purchase price and standard land value for arable land?
The standard land value is an average value per square metre for an area with similar characteristics, determined by expert committees. The actual purchase price may vary due to individual property features, current market conditions, and negotiations.
How can I determine the exact value of my arable land?
For an accurate assessment of your arable land's value, a professional appraisal is recommended. Auctoa offers AI-driven property valuations and strategic advice, considering all relevant factors. You can also use our ImmoGPT chat for an initial assessment.
Does leasing play a role in the sale of arable land?
Yes, existing lease agreements (duration, rental rates) significantly affect the sales value. Long-term contracts with low rates can be devaluing, whereas favourable conditions can have a positive impact on the price.
Is arable land a good investment?
In recent years, arable land has proven to be a stable investment, with significant price increases. The limited availability and rising demand support this trend. However, any investment should always be thoroughly analysed.
What impact does EU agricultural policy have on arable land prices?
The Common Agricultural Policy (CAP) of the EU influences the profitability of agricultural enterprises through direct payments and support programmes, thereby indirectly affecting the demand and prices for arable land.
Can private individuals easily buy or sell arable land?
Yes, in principle, private individuals can buy and sell arable land. However, the Property Transaction Act applies, which may provide farmers with a pre-emption right, along with other regional regulations. Seeking advice is often advisable.
Additional useful links
The Statistische Bundesamt (Destatis) provides press releases that may contain information on land prices or related economic data.
The platform BORIS-D offers a nationwide overview of official land reference values and serves as a central information source.
The Statistische Bundesamt (Destatis) offers comprehensive tables on the purchase values of properties, providing detailed insights into price developments.
The Bundesministerium für Ernährung und Landwirtschaft (BMEL) provides detailed statistics on lease prices and purchase values of agricultural land.
FAQ
What is the difference between the purchase price and the standard land value for farmland?
The standard land value is an average value per square metre for a zone with similar characteristics, determined by advisory committees. The actual purchase price may differ due to individual plot features, the current market situation, and negotiation.
How can I determine the exact value of my farmland?
For an accurate appraisal of your farmland, a professional assessment is recommended. Auctoa offers AI-backed property valuations and strategic consulting that take all relevant factors into account. You can also use our ImmoGPT chat for an initial evaluation.
Does the lease play a role in the sale of farmland?
Yes, existing lease agreements (duration, lease rate) significantly affect the sale value. Long-term contracts at low rates can be detrimental, while favorable terms can positively impact the price.
Is farmland a good investment?
Arable land has proven to be a stable investment in recent years, with significant price increases. Limited availability and rising demand support this trend. However, an investment should always be carefully analyzed.
What impact does EU agricultural policy have on arable land prices?
The Common Agricultural Policy (CAP) of the EU impacts the profitability of agricultural enterprises through direct payments and support programmes, and thus indirectly affects the demand and prices for arable land.
Can I, as a private individual, simply buy or sell agricultural land?
Yes, in principle, private individuals can buy and sell agricultural land. However, the Land Transaction Act applies, which may provide a right of first refusal for farmers, as well as other regional regulations. Seeking advice is often advisable here.
