Land market in most robust shape since recession, with prices up 5%

A new report has found that Ireland's land market is at its strongest since the recession.

Last year the average price paid for land grew by more than 5% to €9,890 an acre - the highest recorded in eight years.

The supply of land offered for sale was over 86,400 acres, up 15.4% on the previous year.

The data was compiled by the Irish Farmer's Journal for its annual Land Report, which found the market was primarily driven by farmers buying land for agricultural purposes.

Lorcan Allen of the Irish Farmers Journal, who is editor of the report, said there were also some large purchases close to commuter regions which boosted prices.

"There were instances last year in counties such as Dublin, Wicklow, Kildare and commuter regions where there were some exceptional prices paid for land," he said.

"That would have fuelled the increase in the average price of land (in those counties)."

While the market is primarily driven by farmers buying land for agricultural purposes, 2014 did mark the return of the speculator, with some huge prices paid for agricultural land with development potential.

This was particularly the case in Dublin where the average price of land sky-rocketed by 45.8% to an average of €23,496/acre with a number of farms situated close to commuter regions selling for inflated prices.

Lorcan Allen said this possible return of the speculator to the market is in the context of a housing shortage in Dublin and urban centres.