Commercial farmland is showing strong capital growth for property investment firms, it is claimed.
A new report has shown that the value of grade 3 arable commercial farmland has increased by five per cent in the second quarter of 2010.
The data, from commercial property agent Savills, puts the price of the real estate at £5,225 per acre, compared to an average value of just £2,365 seen in June 2005.
Reacting to the statistics, the head of farm estate sales at Strutt & Parker Mark McAndrew said that farmland currently presents a "fantastic" opportunity for
property investment firms.
Commercial development firms may not see a great yield from farmland assets there are not of possibilities in arable farming, Mr McAndrew claims, but capital growth is expected to remain strong.
"I think the reason that everybody thinks that land prices are going to keep going up in the future is that there is going to be pressure on land to produce food. We could see significant capital growth," he concluded.
Posted by Tess Nelson.
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