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12 de March de 2024
The recovery of investment, young people’s increased access to rural settings and enhanced productivity owing to technology will be the main challenges for the sector this year.
According to our latest Trends Report for the year 2024, Gesvalt forecasts an increase in the demand for country estates this year, driven by changing investor preferences and lifestyle habits. The study, carried out by our Research team, has analysed the rural property market in Spain and indicates that this land is perceived as a stable investment alternative in light of the economic, social and environmental changes that have taken place in recent years, coupled with Spain’s position as the world’s seventh largest agri-food power.
Another factor that supports our forecast is the latest data published by the Ministry of Agriculture, corresponding to the close of the 2022 financial year, which shows the average price of land for agricultural use increased by €83/ha, or 0.8%, to reach €10,263/ha. Furthermore, there has been a 1.4% increase in the prices of farmland, with the greatest jumps coming in irrigated vegetable greenhouses (+11.7% year-on-year), irrigated vegetable open-air fields (+3.6%) and citrus fruits farms (+3.1%). On the other hand, crops that have seen their price fall with respect to 2021 were rice (-2.3%) and olive groves (-1.7%).
As regards evolution by territory, our study shows increases in eleven of them, totalling 78% of the total Spanish agricultural area. The Region of Murcia stands out in a positive sense, with an increase of over 10%, while the greatest decline has occurred in the Principality of Asturias (-14.1%) and Cantabria (-11.8%).
Looking to the future, the company believes that the challenges facing the rural property sector in 2024 will be based around the recovery of business investment, supported by the arrival of European funds. There will be an increasing need to curb unemployment caused by generational change by facilitating access to the rural environment for young people and boosting the productivity of farmland by implementing new technologies.
On the other hand, the report highlights the roadmap that will condition the rural property sector this year. Changes in the demographic structure, including an ageing population or migratory flows, will be determining factors in this increase in demand for rural land for different purposes.
Another factor that looks set to have a positive impact on the interest in this type of land is changing demand preferences. In this sense, our data point to an increase in the number of rural property buyers in areas close to cities. This allows them to enjoy nature without forgoing the services and amenities that come with urban life, a trend that has been on the rise since the Covid-19 pandemic.
The company also highlights environmental conditions and aspects such as sustainable development and environmental awareness as levers of change in rural areas for the coming years. However, it should be noted that environmental restrictions and regulations may have a negative impact on the viability of certain projects on rural land, which could hinder demand. We also foresee a continued commitment to technological innovation, promoting precision agriculture, sustainable development, the reduction of inputs, design of irrigation systems that help optimise water use, crop diversification and the increase in cultivated areas to apply economies of scale. This combination of factors could further increase the profitability of farming projects and the value of land will rise as a result.
