Hvg.hu reports that the price of soil in Hungary has increased by 10% in 2016. The value of the Hungarian soil has surpassed the level of the previous year by 11.2 % thus, on average, 1 hectare of land in Hungary was worth around 1.22 million forints (4,067 euros) in 2016. That is what is revealed by the Soil Index of TAKARÉK.
The rise in the prices has sped up significantly compared to the previous year, but it still lags behind the price present in the 2012-2014 period. Based on the data collected by TAKARÉK, the price of soil in Hungary has doubled in the last 5 years, although it is still not considered to be excessive.
By analysing the Soil Index, it is revealed that the level is around 2.5 million forint/hectare (8,333 euros) above which it is questionable in Hungary whether the investment really pays back.
The Soil Index of TAKARÉK increased to 180.5 in 2016 from the 162.4 level present a year before, while the rate compensated by inflation increased from 133.4 to 147.7.
In 2016, the prices increased in all the regions of Hungary.
The biggest increase was in Western Transdanubia where the territories were purchased for 23.4% more than in the same term of the previous year.
Compared to this, the price increase was less significant in Central Transdanubia (+14.1%) or in the Southern Great Plain (+13.8%), but Southern Transdanubia was also less affected by the increase (+12%). In the rest of the regions, the increase still rested below the average.
It was in the Northern Great Plain where they demanded the most for a part of agricultural land, but Western Transdanubia also surpassed Central Hungary that was considered to be the most expensive region for quite a long time before 2015. It is still in Northern Hungary, however, where it is the cheapest to buy a land because the prices did not reach the level of 750,000 forint/ hectare (2,500 euros) .
Why did the prices went up in each region?
In Northern Hungary, it is mostly the price of the vineyard estates that is the highest. It is almost 1.4 million forint/hectare (4,667 euros) making it the 4th highest among the vineyard regions in the country.
In Transdanubia, it is also because of the vineyard estates that the prices went up. In Central Transdanubia, for instance, a land can be worth around 2.3 million forint/hectare (7,667 euros).
In the Great Hungarian Plain, it is the orchards that are the most precious forms of land, while the agricultural lands are the 2nd most expensive ones.
In Central Hungary, besides the expensive orchards that are worth 1.5 million forint/hectare (5,000 euros), the lawns, meadows and pastures are also in an outstanding position with their value being around 1.3 million forint/hectare (4,333 euros). These properties are also 63% more expensive than the rest of the properties in the country with their average value of 800,000 forint/hectare (2,667 euros).
Based on the results, 2016 was an exceptional year thanks to the land privatization programme launched under the name of Land for the Farmers.
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