Prices to farming land to increase insignificantly in 2007, experts forecast
Prices to farming land will increase insignificantly in 2007, against the background of growing sales-purchase transactions and increase of their share in the total number of transactions.
In 2006, cadastre bodies registered 51,483 farming land sales-purchase transactions, up 8.5% compared to the previous year, and their weight in the total number of transactions increased to 37%, which is the highest quota after 2000.
In exchange, according to the data provided by the Land Relations and Cadastre Agency, the farming land rental reduced significantly from a share of 18% in 2005 to 8% in 2006, and the mortgage reduced almost twice. "This is a welcomed trend, because alienation of farming land through sales-purchase is the only way to consolidate farming lands", representatives of the Land Relations and Cadastre Agency estimate.
Although more and more sales are carried out, and prices raise slowly, the agriculture industry has not become an attractive destination for investors for the time being. "Lately, the prices to farming land have not oscillated too much on economy as a whole, except for the ones located nearby municipalities, in particular, around Chisinau, as well as rayon centers", cadastre experts state. In 2006, prices to farming land varied on average between 3,410 and 18,657 lei (US$1,435).
A recent report by Lara Immovable Exchange states that last year no major changes were registered in prices to farming land, the increase constituted approximately 10%. "The raise of prices to farming land is related exclusively to the perspective of changing the status and destination", Lara experts estimate.
Buyers showed special interest in lands located 30-40 km away from Chisinau municipality. Prices to these lands amounted to 10,000-300,000 lei per hectare, show data provided by the Land Relation and Cadastre Agency. The prices to farming lands located in the rayons nearby the capital such as Straseni (maximum price 21,000 lei), Ialoveni (30,000 lei), Criuleni (20,000 lei) are also high. In the north of Moldova, as for instance in Ocnita and Donduseni, prices vary between 2,000 and 5,000 lei per hectare, whereas in the south, as for instance in Comrat, (1,300- 3,250 lei per hectare) or Vulcanesti (3,150 and 4,160 lei per hectare) the prices are the lowest. // BASA-Press
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