Galway land prices are on the increase as more property changes hands

As house prices in the city show a slight increase, the same is now true when it comes to agricultural land across County Galway in recent weeks.

And it has been revealed that some good quality land is now fetching €9,000 an acre which is a significant increase on this time last year.

The amount of interest in acquiring agricultural land has also increased with more bidders turning up at auctions.

The land in question was sold in the Claregalway area with €90,000 being paid for the 10 acre plot which was described as being of top quality.

It was also revealed that lands located between Dunmore and Milltown were purchased for €8,500 and acre which also shows an increase for this part of the county.

Tuam based auctioneer Martin Tyrrell told Farming Tribune that it was evident that there was a healthy interest in land and consequently prices had increased for good quality land in a sought after location.

But he said that he had not come across anyone purchasing agricultural land with the intention of developing it in the future. “That is not even on the radar at the moment”, Mr. Tyrrell added.

Over the last few months he has sold land in Fohenagh, Mountbellew, Kilbannon, Kilkerrin, Milltown, Caherlistrane, Ballindine and Knockdoe. One of the sales he negotiated involved a 40 acre farm in Claregalway for which €320,000 was paid – this is €8,000 an acre.

Farming is one of the industries that have held firm during the recession which is why there is still a big demand for land.

While prices for land were in the region of between €5,000 an acre for lesser quality land and €8,000 for top of the range property, prices have shown a steady increase in recent months.

Mr. Tyrrell said that that the banks were much more willing to give out loans for the purchase of agricultural land then they were for those wishing to acquire houses.

He said that most of the land sales involved properties ranging from 15 acres to 40 acres which were much easier sold than some of the bigger farms.

“Things have certainly turned the corner as far as farmland prices are concerned and there has been a lot of movement in recent months.

“There has been a big change from this time last year with more land exchanging hands and prices are slightly on an upward scale. It is nothing like the situation six years ago when colossal prices were being paid for land but the situation looks very promising”, Mr. Tyrrell added.