Agricultural land price in Bulgaria increased by 250% for the last 12 years
The price of the agricultural land in Bulgaria has increased by 250% for the last 12 years, according to an analysis by the Ministry of Agriculture and Food. EU subsidies have a substantial role in the price increase. The data shows the average agricultural land prices and is provided by the State Agricultural Market Research Company SAPI, as the last summary is as of 2011.
The research shows that the market activity was low for the period between 1998 and 2003 with an average agricultural land price of BGN 140 per decare (equal to 1,000 square metres). In the period from 2004 to 2007 there has been an increased activity in the market, where the average price went up by 24%. The price increase is believed to be mainly a result of the upcoming EU membership and the subsidies associated with it.
In the 3-year period, following the EU membership in 2007, the highest farmland prices have been reached. In 2009 the average price reached BGN 300 per decare, which is a 100% increase in 3 years. In the same period the number of agricultural land deals reached its peak at 374,000 with 3,6 mln decare traded in the country.
In the period following 2009 the price-increase dynamics significantly slowed down, but the average price still increased to reach BGN 361 per decare in 2011. Analyzers predict a further delay in the price-increase dynamics and even a decrease in the average price in the next 2-3 years.
The data from the Ministry of Agriculture shows that in 2011 the highest market activity on the land market was in north-western Bulgaria - an area where in the previous years the rise in prices and deals has fallen behind compared to other regions in the country. However, the demand in land remains stable in the south-western and south-eastern parts of the country, according to the research.
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