The price of agricultural land in Estonia has almost doubled in 10 years
According to official statistics, the price of agricultural land in Estonia has increased by 195% over the past 10 years. This trend indicates the high potential of local plots and the development of the agricultural sector.
Raul Eamets from Bigbank presented the dynamics of price changes in terms of profitability. He noted that few funds can boast such impressive returns over a ten-year period. Trends in agricultural land sales are as follows:
– the price per hectare in 2014 was EUR 2,302.
– at the end of 2024, this had increased to EUR 6,447 per hectare.
– the average price per hectare in Harju County is EUR 8,052.
– prices for plots in Hiiumaa and Saaremaa are slightly lower, at around EUR 4,000 per hectare.
The most expensive land is sold in Põlvamaa – more than EUR 8100 per hectare. Prices in the south-eastern regions of Estonia are traditionally lower than in other parts of the country.
Types of plots
In Estonia, agricultural plots are divided into two types: arable land and grassland. As a rule, arable land is more expensive and in higher demand. Their value has risen steadily over the last ten years:
1. In 2024, the value of a hectare of arable land in Estonia was approximately EUR 7,000.
2. In 2014, the value was EUR 2,400 per hectare.
3. Since 2021, the rate of growth has accelerated significantly. Already in 2022, the average value of a hectare increased by more than EUR 1,300.
Traditionally, agricultural plots in areas with fertile soil are more expensive. Such areas include Järvamaa, Tartumaa and Põlvamaa.
Experts believe that the active growth in land prices is due to large investors showing interest in land plots. Businesspeople have been purchasing large areas of land, which has put pressure on the market. At the same time, landowners themselves are not seeking to inflate prices. The price increase is mainly due to the volume of transactions, rather than individual revaluation of plots.
Land market trends
In 2024, market participants in Estonia made 17,600 land purchase transactions. Of these, 10,600 were for undeveloped land and 7,022 were for developed plots.
Demand for agricultural land and building plots remained strong across the country. These figures are closely linked to activity in the property market. In 2024, market participants concluded over 51,300 contracts, around 40,600 of which were sales and purchases. The total value of these transactions increased by 13% to EUR 5.5 billion. This indicates a simultaneous increase in the prices of both land and property.
