CEE REPORT FLIPPING PAGES.pdf

Brown&Co Research CEE Land Market Brief 2014 Brown & Co Res arch Central & Eastern European Land Market Brief 2014

Wojtek Behnke wojtek.behnke@brown-co.com

Polish Land; Demonstrates depth and resilience of a developed market

Poland’s landmarket has gone through a period of sustained growth over the SDVW ÀYH \HDUV 7KHPRVW PDUNHG increases in value have occurred in the prime arable sector with sub sectors following suit - albeit at a steadier pace. Prime values have risen at an average annual compound rate of 14% over the last 5 years, in e#ect doubling the value of highly productive, prime arable land. This is due to a variety of reasons that have, through the period, led to an increase in pro%tability (higher yields,

professionalisation of the sector, higher overall commodity prices, higher EU Single Farm Payment) coupled with greater access to capital. In Poland there are two markets, transactions undertaken by the state and transactions undertaken by the private sector. National statistics can be misleading with the average price of state sold land in 2013 billed at £4,259/ hectare but land in the private sector known to be trading for as much as £13,000 / hectare (Euro 15,000/ha) su$ce to say, there is very little transparency on the private market.

Prime values have risen circa 100% on the back of increased FRPPRGLW\ SULFH

12 CEE Land Market Brief 2014