Alma Davidova gave us her perspective on why the agricultural land in Bulgaria is a profitable investment in an article for “BG Fermer”.
The demand for agricultural land in Bulgaria is high and is pushing the sale price and rent up too.
The National Institute of Statistics (NSI) indicates rent on agricultural land has seen an increase for 8 consecutive years. The three most expensive regions are in the North of Bulgaria, Dobrich, Silistra and Razgrad with average price of 91 BGN, 78 BGN and 59 BGN per decare, respectively. The rent in the South of Bulgaria is on average lower compared to the North of the country.
As it turns agricultural land could be a viable investment opportunity. The average rate of return is between 3% and 4 % a year. Moreover, this is quickly becoming a far more attractive proposition than interest rates on deposits.
The rent is determined considering various factors, some of which are the category of the soil, location and yields. Competition between farmers in an area can get you a rate of return as high as 10%.
Back in 2010 average rent was 23 BGN per decare, the same increased to 34 BGN in 2011-2012 and increased again to 42 BGN in 2014-2015. In 2018 average rent on decare of agricultural land reached 48 BGN or an increase of +4.3% vs. 2017.