Grazing land values are set to keep rising, with only 38% of respondents to a landowner survey predicting any ownership mobility.
The Society of Chartered Surveyors Ireland and Teagasc’s report on 2014 land sales found that dairy expansion drove Dublin prices up by 26%. The rest of Leinster and Munster saw more modest 7% increases.
However, prices fell by as much as 19% in Connaught and Ulster, where dairying is less intense. Growth in rental prices was strongest in Munster, up 12%-18% last year.
Teagasc economist Kevin Hanrahan said: “The research shows that agricultural land of up to 50 acres, with no entitlements, and no residential holding in Dublin averaged €11,700 per acre in 2014, up 26% on the previous year.”
When SCSI and Teagasc studied 2014 in tandem with earlier years, they found a growing divergence in land values in the South and East of Ireland versus the North and West.
The average price of agricultural land of up to 50 acres with residential holdings and entitlements in the Rest of Leinster region was €11,947, an increase of 7% on 2013. In Munster, it was €11,608, up by just 2%.
Teagasc economist Trevor Donnellan said: “Land in the Connaught/Ulster region saw some notable downward pressure on prices, with agricultural land up to 50 acres with residential holdings and entitlements falling by 9% to €6,700 per acre. However, in some cases the decline in values in this region was as much as 19%.”
The report showed an across-the-board increase in prices for grazing land in 2014, with the strongest increases in Munster.
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