Weather impacts on land market

THE extreme weather conditions of the past year – allied to fears over Brexit – have impacted negatively on land prices across the country, according to the latest report from the Institute of Professional Auctioneers and Valuers (IPAV).

Land prices have varied massively across the country this year, according to the IPAV, from as low as €4,000 per acre for marginal lands to €15,000 for smaller plots in commuter belt areas.

What the IPAV describe as ‘average prices’ for land come in around the €9,000 to €9,500 per acre bracket in keeping with a land market trend of sluggish movement for the past couple of years.

Land prices dropped by 3% in 2016 and recovered slightly, +1%, in 2017, but now 2018 looks like being another ‘slow year’ for land prices, not helped by the extreme weather conditions of the past 12 months.

Pat Davitt Chief Executive of IPAV said at last week’s Ploughing Championships in Screggan that land value was often a key indicator to the sentiment or health of the prevailing agricultural sector.

“As if the severe drought has not been enough of a challenge, the uncertainty and worry that Brexit brings is also being felt.

“This is particularly so along the border counties where sales activity and investment has slowed considerably,” said Mr. Davitt.

According to the IPAV report, one of the key factors impacting on sentiment and confidence in 2018 has been the inclement weather of the past year

“Following three years of good growth with typical weather patterns, matters became challenging in 2017 with extensive flooding followed by snow in late February 2018, and an extensive period of drought in June 2018 and the first half of July.

For more, read this week’s Connacht Tribune.

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