The price of the Hungarian soil is heavily increasing

Hvg.hu reports that the price of soil in Hungary has increased by 10% in 2016. The value of the Hungarian soil has surpassed the level of the previous year by 11.2 % thus, on average, 1 hectare of land in Hungary was worth around 1.22 million forints (4,067 euros) in 2016. That is what is revealed by the Soil Index of TAKARÉK.

The rise in the prices has sped up significantly compared to the previous year, but it still lags behind the price present in the 2012-2014 period. Based on the data collected by TAKARÉK, the price of soil in Hungary has doubled in the last 5 years, although it is still not considered to be excessive.

By analysing the Soil Index, it is revealed that the level is around 2.5 million forint/hectare (8,333 euros) above which it is questionable in Hungary whether the investment really pays back.

The Soil Index of TAKARÉK increased to 180.5 in 2016 from the 162.4 level present a year before, while the rate compensated by inflation increased from 133.4 to 147.7.

In 2016, the prices increased in all the regions of Hungary.

The biggest increase was in Western Transdanubia where the territories were purchased for 23.4% more than in the same term of the previous year.

Compared to this, the price increase was less significant in Central Transdanubia (+14.1%) or in the Southern Great Plain (+13.8%), but Southern Transdanubia was also less affected by the increase (+12%). In the rest of the regions, the increase  still rested below the average.

It was in the Northern Great Plain where they demanded the most for a part of agricultural land, but Western Transdanubia also surpassed Central Hungary that was considered to be the most expensive region for quite a long time before 2015. It is still in Northern Hungary, however, where it is the cheapest to buy a land because the prices did not reach the level of 750,000 forint/ hectare (2,500 euros) .