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Agricultural Land Prices Up

The price of farming land is forecast to increase by 15 to 20 percent per annum. During 2008 the price for farmland has already increased by 35 to 40%, Georgi Georgiev, Chairman of the Bulgarian Association of Farm Land Owners, has announced.

According to Georgiev, such a fast price increase is a cause of concern. The most expensive farmland in Bulgaria is currently in Dobrudja area, where the average price reaches 500-550 BGN per decare. In the rest of the country, prices are within a range of 300-350 BGN.

The financial crisis still has not affected agricultural land in Bulgaria. Despite this, there is a certain slowing down as buyers in the market are waiting to see the effect of the global financial problems on this market.

Research during summer this year found that prices of agricultural land have risen by 40% in recent years, attributing this new trend to the lower risk and less involvement for potential buyers as opposed to buy-to-let and commercial properties.

Compared to other European countries, agricultural land in Bulgaria is less than half the price.

The trend is to buy agricultural land in an attractive location, go through the process of regulation and re-sell it for a handsome profit. Although this process can be time consuming and frustrating and there is no guarantee of a positive outcome.