According to our latest Trends Report for the year 2024, Gesvalt forecasts an increase in demand for country estates this year, driven by the new lifestyle habits and preferences of potential investors. The study, carried out by our Research team, has analysed the situation of the rural property segment in Spain and points out that this land is perceived as a stable investment alternative in the face of the economic, social and environmental changes that have taken place in recent years and considering Spain's position as the seventh largest agri-food power in the world.
Another factor that supports our forecast is the latest data published by the Ministry of Agriculture, corresponding to the close of the 2022 financial year, which shows that the average price of land for agricultural use increased by 83 €/ha, or 0.8%, to reach 10,263 €/ha. Furthermore, an increase of 1.4% was observed in farmland prices, with the largest increases being seen in irrigated greenhouse vegetables (+11.7% year-on-year), irrigated open-air vegetables (+3.6%) and citrus fruits (+3.1%). On the other hand, the crops that have reduced their price with respect to 2021 were rice (-2.3%) and olive groves (-1.7%).
With regard to territorial evolution, our study shows that there have been increases in eleven of them, totalling 78% of the total Spanish agricultural area. The Region of Murcia stands out in a positive sense, with an increase of over 10%, while the largest contractions have occurred in the Principality of Asturias (-14.1%) and in Cantabria (-11.8%).
Looking to the future, the company believes that the challenges facing the rural property sector in 2024 will be based on the recovery of business investment, supported by the arrival of European funds, on halting unemployment caused by generational change by facilitating access to the rural environment for young people and on increasing the productivity of farmland through the application of new technologies.
Socio-cultural changes and technology: drivers of demand
On the other hand, he highlights the roadmap that will mark the rural property sector this year. In this sense, changes in the demographic structure, such as, for example, the ageing of the population or migratory flows, will be determining factors in this increase in demand for rural land for different purposes.
In addition, another factor that will have a positive impact on the increase in interest in this type of land will be changes in demand preferences. In this sense, our data point to an increase in the number of buyers of rural properties in areas close to cities, given that it allows them to enjoy nature without renouncing the services and amenities of urban life, a trend that has been on the rise since the Covid-19 pandemic.
On the other hand, the company highlights environmental conditions and aspects such as sustainable development and environmental awareness as levers of change for the coming years in rural areas. However, it should be noted that environmental restrictions and regulations may have a negative impact on the viability of certain projects on rural land, which could hinder demand. We also foresee a continued commitment to technological innovation, promoting precision agriculture, sustainable development, the reduction of inputs, the design of irrigation systems that contribute to optimising water use, crop diversification, and the increase in cultivated areas to apply economies of scale. This combination of factors could further increase the profitability of farm projects and thus the value of land.