Greif & Meyer in top agrar: Land markets: Are interest rates putting pressure on prices?

Specialist broker for agricultural, forestry and equestrian real estate

Greif & Meyer in top agrar: Land markets: Are interest rates putting pressure on prices?

PRESSURE IN CONURBATIONS

...Andreas Eßer assesses the situation similarly. He is Managing Director of Greif & Meyer, another estate agent specializing in agriculture. "There is no correction for pure land sellers," says Eßer. If, on the other hand, not only land but also buildings or entire farms change hands, a price drop of 10 to 15 % can be observed. This is because the proportion of borrowed capital is usually much higher in these cases.

LONG-TERM INVESTMENTS

What's more, buyers usually extend the terms of land financing to much longer periods than for traditional residential properties. Kerstin Lohmann has observed this in her day-to-day work. She is a corporate customer advisor for agriculture at DKB and is responsible for Schleswig-Holstein and northern Lower Saxony. While private individuals would like to own their own four walls in 20 to 30 years, financing for agricultural land can also be paid off over 30 or 50 years. For her region, there is another price driver.

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