Agricultural land values rise slightly in 2015

sheep fieldAgricultural land values rose by 1.1% in 2015, to stand at approximately €9,800 per acre. This compares to growth of 3% recorded in 2014, according to the latest report by Sherry FitzGerald Group. There was a slight increase in counties in the South West such as Kerry with a 0.8% increase in the region. The regions with the highest growth rates in 2015 were the South-East and the West at 4.3% and 4.0% respectively. Following average price growth in farmland of 1.5% in the first nine months of 2015, prices dipped in the final quarter, falling by 0.4%, reflecting the ongoing volatility in the market. Commenting on the market, Roseanne De Vere Hunt, Sherry FitzGerald said, “The outlook for 2016 will see a similar trend to 2015 with modest growth levels. Demand is likely to be strongest for smaller parcels of land as the market remains hampered by a lack of cash and restrictions on borrowing.” Meanwhile the REA Average House Price Survey, which gives an up-to-date picture of the property market in towns and cities countrywide, is predicting an 8.8% rise in prices in Kerry in 2016 in the price of the average three-bed semi-detached house. According to Donal Culloty from REA Coyne & Culloty in Killarney, prices will rise as no new houses are being built.