Agricultural Land Transaction Prices Against the Background of Property Intended for Investment Purposes in Poland

Abstract

Abstract Since Poland’s accession to the European Union in 2004, a steady increase in transaction prices of agricultural property has been observed. Also in other countries, mainly in Eastern and Central Europe, there has been an ongoing increase in the prices of agricultural land. The situation on the agricultural land market is influenced not only by the market mechanisms, but also by the political decisions, including restrictions in the turnover of land properties. The purpose of the study is to analyze the agricultural land market in Poland and to determine the relationship of average land prices for housing, service and industrial purposes against the average prices of agricultural land in 2004-2019. In the course of the study, price changes on the discussed market were assessed, and forecasts and simulations concerning the prices of agricultural properties and land intended for selected investment purposes were prepared. It was established that the increase in agricultural property prices over the recent dozen or so years is inadequate to the increase in the average gross salary in Poland and the average income from work at individual farms. However, the increase in prices is almost parallel to the increase in average transaction prices of property intended for housing purposes.