There is a renewed momentum in the market for farmland in Ireland which is resulting in rising values and the strongest trade experienced in recent years. A tightened supply coupled with more buyers is resulting in competitive interest for all farms offered for sale, with average prices just over €11,500 per acre but with a number of sales generating bids of €20,000 per acre due to strong neighbouring interest.

Non-farming money continues to dominate the market, owing to taxation advantages, a belief that land is a secure asset (in particular at a time of inflationary pressures), a strong farming heritage in the country and food production.  The reasons for investment are broadening, with a growing emphasis on the positive contribution that land ownership can make to the environment, plus more lifestyle buyers attracted to country living and the ability to work from home.

The strength of demand for smaller blocks is localised and determined by the number of neighbouring farmers looking to expand their holdings. Fewer than ten units in excess of 200 acres were offered for sale throughout the island of Ireland in 2021 and supply of large farms coming to the market remains limited.  This rarity factor is resulting in premiums being paid for scale, irrespective of the land quality. The recent increase in average land values, coupled with rising input costs, may see more acres offered for sale, however, the expanding range of buyer types is likely to maintain firm land values for the remainder of 2022.

Please see the portfolio of farms and estates recently sold at Savills as well as some of the farms and estates currently for sale below.

James Butler is Head of Country Agency at Savills Ireland.