Tuesday, June 26, 2012

"French Farmland Offers Better Value than UK Land"

We've been posting on British Farmland for years but, outside of the odd Chateau listing and the effects of climate on wine growing I think this is the first French farmland post.
Two things to be very, very wary of: The Common Agricultural Policy and the French tax code.
From E1 BTL News:
The latest Rural Land Market Survey from RICS suggests that demand for commercial farmland is still high, but it is now focused across the channel as France offers better value or investors.

In the first quarter of 2012, farmland prices in the UK have risen by another 0.4%. Now, 1 acre of agricultural land is priced at 6,073 pounds or 15,182 pounds per hectare. This is 18,000 euro at an exchange rate of 1.24 euro.

Agricultural land of the same quality is France is now priced at 5,430 euro per hectare, which is almost 3 times cheaper than in the UK.
Commenting on the finings, Trevor Leggett, managing director of French-based estate agency Leggett Immobilier, said: "I simply believe that it's even more attractive in France. The price of English farmland has rocketed by more than 10,000% in the last 60 years and France certainly gives farmers a cheaper (and sunnier) option!"
Sue Steer, of RICS UK, in her turn, warned: "...prices continued to rise so sharply across most of the country. Furthermore, it would seem that this trend is set to continue over the next twelve months."
The Royal Institute of Chartered Surveyors will be coming out with their first half numbers in about six weeks, we'll report back. Here's the H2 2011 report.
Some of our earlier British farmland posts:

Feb 2, 2008 
The hedge fund manager who bought a farm

Oct. 14, 2009 
Green Acres is the Place to Be: "The UK farmland grab"
March 2, 2012 
Absolute Return Partners on Investing in Farmland

June 4, 2012 
Factoid: Price of English Farmland Has Risen 10,745% During the Reign of Elizabeth II Regina