1000 ha deal for agricultural land in Dagda

 

 

This autumn, the Danish investor-owned SIA "Brīvība" concluded a land sale transaction of around 1000 ha in the Krāslava region. The majority of the transaction consisted of agricultural land and industrial buildings, the buyer of which is a Latvian farm. AUCTUS CAPITAL, the exclusive advisor to the transaction, points out that this is a positive example in the development of Latvian farms, which has allowed to significantly increase the land area of the local farm and grow production volumes.

 

"We are now seeing a generational change in the property buying/selling market. Some of the people who bought property in the early 2000s have now reached retirement age and are selling their properties abroad, including in Latvia. This opens up opportunities to reclaim Latvian land and develop local farms."

Edgars Mālkalns, Transaction Adviser, Auctus Capital

 

In recent years, agricultural land prices have soared, often making them exclusive properties. Although the total transaction value is not disclosed, the average price for land in Krāslava region in the first half of 2021 was EUR 1530/ha*, suggesting a total transaction value of over EUR 1 million. 

Rural land prices vary not only between districts, but also between municipalities. The price of land is influenced by a combination of elements such as the fertility of the field, its location, size, strategic objectives and other factors that need to be properly assessed in order to determine the transaction value. The total area may include not only agricultural land but also forest land, for which a forest inventory or valuation must be carried out. In the transaction carried out by AUCTUS CAPITAL, 303 hectares of the 1 000 hectares were forest land which was sold to another buyer.

 

*https://data.gov.lv/dati/lv/dataset/tirgus-statistika/resource/e4d60024-e97d-4c46-be6f-71d24fe1d9c9