The Irish Examiner reports today that Knight Frank Ireland are concluding that prices have stabilised and indeed have risen slightly according to their first ever half-yearly report into agricultural prices in the State saying that prices have risen on average from €9,678 an acre in 2009 to €10,131 an acre in the first half of 2010. If you examine the Knight Frank report for 2009 you will see that the figures then were distorted by the sale of 1,540 acres at Fanore in Co. Clare for €1,157,000 (€750 an acre). Removing that one sale from the figures leaves the remaining average for 2009 at €11,236. Given that there appear to be no distorting sales in the first half of 2010, you could say that on a more accurate basis that prices have dropped by 9.8% in the first six months of this year – hardly a stabilisation.
According to the latest report from Knight Frank, there is still some considerable variance in the price of agricultural land throughout the State with prices as low as €7,039 an acre in the North-west and as high as €16,139 an acre in the Dublin and surrounding areas.
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.
NAMA Wine Lake 