This article focuses on the growth of farmland prices in Estonia in 2022.
Estonian land price growth in 2022
We analysed year-on-year land transactions and price data and found significant appreciation in land prices last year most likely due to high inflation, environment and current security crisis in Eastern Europe, which has increased demand for land.
Below please find the table with the summary of statistics, it shows the average price/ha change in % from the IV quarters of 2021 to 2022.
For example, in Estonia’s biggest county Harju, the average farmland price/ha has increased by nearly 60% over a year. We have looked at real transactions data and the total average growth in all of the counties was 53.75%!
The data were obtained from the Estonian Land Board.
Up next, you will find a chart, which visualises the lands’ average price growth in all of the Estonian counties. The prices on the graph are shown per hectare and the comparison is made also between the IV quarters of 2021–2022.
Based on our analysis, the year 2022 showed a significant appreciation in land prices due to the environment we live in, high inflation prices and the current security crisis happening in Eastern Europe. These factors have increased the demand for land.
We believe further increases in land prices are expected, as inflation is expected to continue in 2023 and Estonian land is still relatively cheap to some of the neighbouring countries, such as Sweden.
Source: Estonian Land Board