As NAMA has indicated, in some instances it may have no option but to demolish property on which loans are secured and return the land to agricultural use. Today’s Independent provides some encouraging news for agricultural land values which although more than 50% off peak values in 2007 are beginning to stabilise. The Independent reports that agricultural land peaked at an average of €20,000/acre in 2007 but is now worth between €6-10,000/acre. There is also a claim by auctioneers that volumes are picking up.
The story curiously echoes articles four months ago, when the average price of an acre was put at €9,678 per acre and also reported that sales volumes were on the increase.
The cost of clearing a single house has recently been put at between €42-50,000 according to an article in the Independent. Presumably NAMA will have to do everything to sell these properties before incurring substantial losses in demolishing houses and selling the land for agricultural use.
NAMA Wine Lake 
[…] Earlier this year, in May 2010 the Independent reported that prices were stabilising at the €6-10,000 per acre level depending on location. Scant comfort to NAMA if they do need demolish estates and return them to agricultural use though NAMA might be more concerned at the reported cost of demolishing a single house – €42-50,000. […]