Commercial Finance Specialists

Commercial farmland is seeing a rise in value as demand continues to increase, according to the latest data.

Commercial developments in the farming sector are in high demand from property investment firms.

This is being driven by a lack of supply in commercial farmland, resulting in high asset values in the sector, according to the latest data from the Royal Institution of Chartered Surveyors (Rics).

Over the first half of 2010, 47 per cent more chartered surveyors reported a rise rather than a fall in demand for commercial farmland.

This represents a 16 per cent rise from the same period in 2009, the trade association claims, while 45 per cent more Rics members are predicting a rise rather than a fall in the rest of the year.

Rics spokesperson Sue Steer says that many of the demand is coming from commercial farmers looking to expand their operations.

"Farmland continues to be viewed as 'recession proof' and we are seeing UK and overseas investors purchasing commercial farms as an alternative form of investment which is outperforming other markets," she explained.

In a separate report recently published by Rics, it was revealed that tenant demand in the commercial development sector had fallen in the second quarter of 2010.

Posted by Lisa Fear.