Cork Land Prices and Market Trends

The agricultural land market in County Cork, continues to exhibit strong dynamics according to the recent SCSI/Teagasc Agricultural Land Market Review and Outlook for 2024. For those interested in Cork land prices, this survey provides essential insights into the factors driving the market, expectations for the coming year, and the strategic considerations for buyers and sellers.

Cork Land Prices and Market Trends

Land Price Increase Predictions for 2024

The SCSI forecasts that nationally, agricultural land prices will increase by an average of 6% this year, driven by a recovery in milk prices and sustained demand from both farmers and investors. In County Cork, these trends are particularly pronounced given the region’s strong agricultural base, making it a hotspot for those looking to invest in or expand their agricultural ventures.

Land Rental Price Growth

In line with price increases, rental prices for agricultural land are also expected to rise. Nationally, a 4% increase is anticipated, but in Munster, the increase is projected at a robust 7%. This follows a year where land rental prices for grazing in Munster soared by 23%, and cereal crop land rentals grew by 9%. Such trends underscore the burgeoning value of land in the region, reflecting a high demand against a backdrop of relatively low supply.

Factors Moderating Price Increases

Despite the optimistic outlook, certain factors are poised to moderate these increases. These include higher interest rates, poorer weather conditions, and lower farming returns. Teagasc also highlights the potential impact of adverse weather on agricultural output and farm incomes, presenting a note of caution for stakeholders in the agricultural sector.

Stability in Sales Volume

The volume of land transactions in County Cork remained stable last year, comparable to 2022 figures, with executor or probate sales continuing as a primary source of land transactions. This stability in sales volume amidst growing prices and rental rates paints a picture of a resilient market

Increasing Rental Values

Despite the broader economic pressures, average rental values in Munster increased by 12% last year, following a 13% rise in 2022. The specific prices per acre ranged significantly, from €297 for grazing only to €389 for potato crops, indicating the variable value of agricultural land based on its use.

Diverse Buyer Interest

While dairy farmers remain the primary buyers of agricultural land, constituting 69% of purchases according to survey respondents, there is a notable diversification in the buyer profile. Approximately 20% of buyers are now classified under ‘other,’ including investors interested in forestry, equine purposes, or high net worth individuals looking to diversify assets. This shift suggests a broadening appeal of agricultural land beyond traditional farming uses.

The SCSI/Teagasc survey underscores the vibrant nature of the agricultural land market in County Cork and West Cork, where demand remains high amidst rising prices and rental rates. If you are considering selling or letting agricultural land in these areas, now is an opportune time to capitalize on market dynamics.

Do you have agricultural land for sale or rent in Cork or West Cork?

Contact us today for personalised advice on navigating the agricultural land market or to explore opportunities for selling or letting your property.

Read the full SCSI report here