Bulgarian farmland has seen a hike of 26% over the previous year, when deals on half a million decares were realized.
According to the annual report of the System on Farm Market Information, the average price hit BGN 194 (approximately EUR 100) per decare. Some 94% of transactions sought to further develop the agriculture in the respective region, Deputy Agriculture Minister Svetla Buchvarova said.
Most attractive appeared to be farmlands in the north-east area of Dobritch.
According to the conclusions of the report, the upcoming EU membership of the country, scheduled 1 January 2007, pumps expectations on increased farm productivity and stable profits.
Meanwhile, deals in which the purpose of the farmland would be changed afterwards were agreed on the average of BGN 28,000 (approximately EUR 14,000) per decare.
A report of the Centre for Economic Development, released in the end of 2005, pointed that the sustainable development of farming in Bulgaria improves the demand of agricultural land.
The high market supply allows for selecting land parcels according to certain quality and size criteria (over 10 decares), the analysts said. The future EU accession and the opportunity to benefit from sizable amounts of subsidies will make the practice of tenant farming increasingly popular.
Consolidated land allows for leasing at higher prices and achieving higher yield, the CED report stressed, which, in turn increases the price of Bulgarian farm land.