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01.04.2009 Agricultural Land Deals in Bulgaria Up by 7 Percent in 2008

investor.bg, 31.03.2009

The agricultural land market in Bulgaria in 2008 was quite dynamic with 134,000 deals concluded for 1,374 million decares of land which is respectively 7 percent and 19 percent more compared to 2007. This is what the Deputy Minister of Agriculture and Food Svetla Bachvarova said at a conference while presenting a research of the state and development trends on the agricultural market in the country for 2007-2008.

The land sold for agricultural production amounts to 1,286 million decares as the increase compared to 2007 is 21.2 percent.

The research shows that in 2008 the average price of land intended for development of agricultural production was 312 BGN per decare which is 32.8% more than in 2007.

The trend for great price differences in the various regions around the country is kept. The lowest prices are to be found in Lovech and Pernik areas (respectively 201 BGN and 140 BGN per decare) and the highest are in the Dobrich area (546 BGN per decare).

For a second year in a row in 2008 the biggest number of land deals were concluded in the northern central area of the country 37,856 deals for 360,903 decares.

2008 witnessed a decrease in the renting of agricultural land, the research shows. This is due to the fact that in 2008 and 2007 a great part of the tenant farmers and agricultural co-ops signed long-term contracts with the land owners for over 4 years.

The arable land around the country amounts to about 29 million decares and the common pastures and grazing grounds are about 4-5 million decares. There are 2 million land owners in Bulgaria who own 20 million plots of land, the Deputy Minister added.

According to her there shouldnt be an increase in agricultural land prices in 2009 but a slight decrease in some areas where the prices are too high.

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