Agricultural land in the Czech Republic is increasingly attractive to investors thanks to stable price growth, decreasing availability or easier management, says Lukáš Cibulka, Director of the real estate portal Mojepole.cz in the current assessment of the land market in the Czech Republic with outlooks for 2025.
The year 2024 brought a return to normal. The real estate market is awakening again after fluctuations and Czechs are still investing in real estate, but investments in agricultural land are also appearing more and more. Agricultural land benefits from its limited availability in the long term: it cannot simply be "produced" more.
As a result, it maintains its value and delivers 5-10% year-on-year growth in 2024. The amount of growth is influenced by land type, quality, use and location. "Agricultural land represents a stable long-term investment that is ideal for passing on from generation to generation. Its value gradually increases and investors do not have to face risky investments to preserve the value of their money," says Lukáš Cibulka.
Agricultural land prices will likely rise along with the rise in the residential segment, faster than in the previous two years. The reasons are both stabilized inflation and the revival of the Czech economy, which increases the appetite of investors. There are also positive trends in the demand for a sustainable economy associated with the support of small and medium-sized farmers and opportunities associated with green energy. "In the long term, land will likely become an even more valuable and sought-after asset," states Cibulka.
For many investors, agricultural land is also attractive because it does not carry as many worries as apartments or houses. Complex negotiations with tenants or the need for repairs or expensive maintenance are eliminated. "Agricultural land is known for its stability and minimal management requirements, which makes it an ideal choice for long-term investors," concludes Cibulka.
