Real Estate Alliance

Real Estate Alliance Review of Agricultural Land in 2005

National property group Real Estate Alliance sold a total of �260m in agricultural land in 2005, an increase of 16% on last years figure. Agricultural sales have been strong over the last 12 months with smaller farms being particularly attractive to buyers. Real Estate Alliance members have cited two reasons for the strong performance of smaller farms, including the suitability of this type of land to �hobby farmers� and investors buying land with perceived �hope value�.

Prices throughout the country vary slightly depending on proximity to motorways and the greater Dublin area. For the most part, the cost of a grass acre is �10,000 - �18,000, with some areas earning as high as �65,000 (Please see table below for a detailed breakdown of costs round the country). Tillage prices per acre are on average slightly higher, with average prices of between �15,000 and �20,000. The average size of farms being sold is 50�100 acres although the greatest demand is for small parcels of land with building potential.

According to Eddie Barrett, Chairman of Real Estate Alliance, the agricultural land sale market is extremely healthy at the moment. �It is anticipated that demand will continue strong ly into next year and will doubtless continue to outstrip supply. There is a shortage of good size sizes farms, with or without dwellings, and this is where the demand lies�, commented Mr Barrett.

Some of the biggest sales around the country were recorded by Real Estate Alliance agents in 2005. Coonan Real Estate Alliance, Maynooth, sold 23 acres for �2million in Straffan, Co Kildare (including cottage and a bungalow) this season, attaining a price of �65,000 per acre. The demand for farming land in the Kildare/Meath region is extremely high with Real Estate Alliance members attaining up to �40,000 per acre . In in Sallins , . one of the highest farming land sales achieved in the market was �675,000 for 10 acres. This land was bought with potential to build a single house. This is a continuation of the trend over the last number of years, which has seen investors pay high prices for farms with proximity to motorways and large towns, with the expectation of �hope� potential for future development.

Other large recorded sales included were for TE Potterton Real Estate Alliance, Trim, along with Coonan Real Estate Alliance, Maynooth who sold They sold 170 acres non residential mixed use land for cereal or dry stock in Ballynaskeagh, Delvin for �2.95million , achieving �17,000 per acre. According to Thomas Potterton of TE Potterton Real Estate Alliance, �there is a shortage of large tracts tracks of land with potential to build a home, in this area. Factors which help achieve the best price include proximity to towns, road frontage, possibility of future planning and , river frontage. Where If there is the remains of a dwelling on the land, the land will be in even greater great demand�, he said.

T&J Gavigan Real Estate Alliance, Kells sold 12 acres of pasture lands near Oldcastle, Co. Meath with no planning and no building s for �455,000 , achieving attaining �38,000 per acre. Murtagh Bros Real Estate Alliance, Co. Westmeath , sold 345 acres in Abbeyshrule, Co. Longford for �4.9millon. In September they also sold 255 acres for �3.5million in Tang, Co. Westmeath. John Lee & Son Real Estate Alliance, Newport, Co. Limerick , sold 55 acres for �1.2million outside Caherconlish, Co. Limerick.

There has been no significant change in the letting value of land rental incomes from farms, but rentals prices do vary around the country. Rental Prices per acre of grassland was generating earning between �100 - �150 per acre in areas such as Carlow, North Kerry, Mullingar, Trim, Westport and Tubbercurry. Rents in Kilkenny were lower at �80 per acre for of grassland. Tillage rent is slightly lower than grassland returns in areas including Kerry, Westmeath, Kildare and Meath and Carlow (Please see table below for a full breakdown of rents around the country).

Real Estate Alliance members have noticed that the typical buyers of farms in Ireland are changing , . More members are noticing that �traditional farmers� are selling their land , due mainly to family members families not wishing to continue in farming, or the retirement retirements and demise deaths of older farm owners. The emergence of �hobby farmers� and business people businessmen as farm owners has increased the demand for smaller farms , with Real Estate Alliance members selling more and more land to those seeking a change of lifestyle.

Despite fears that the Single Farm Payment System would affect farms sold, with or without entitlements, Real Estate Alliance members are confident that the initiative won�t have a major impact on the sector. Eddie Barrett, Chairman of Real Estate Alliance explained this confidence stating, �it will even give added value to the land , increasing the price slightly by up to three times the amount of the entitlement�.

Real Estate Alliance member firms draw on vast experience in offering clients a top class service in residential, commercial, valuations, sales, purchases, lettings, agricultural lands as well as land development for housing sites, acquisitions, planning, zoning and professional consultancy, including rent reviews, arbitrations,

CPO� s. lease renewals and appraisals.

Location	Price per acre for grass (to buy)	Price per acre for tillage (to buy)	Price per acre for grass (to rent)	Price per acre for tillage (to rent)
Carlow(Town surrounds)	€15,000– €20,000	€15,000	€140	€100
Tullow, Carlow	€12,000	€12,000	€120	€100
Maynooth/Kildare	€15,000- €65,000	€18,000	€140	€150
Trim	€15,000	€15,000	€120	€130
Kells	€15,000-€20,000	€20,000	€130	€160 - wheat *€400 for potatoes
Tubbercurry/Sligo	€10,000- €15,000	€12,000	€100 - €150
Limerick Region	€15,000 - €18,000	Same	€180	€180
Westmeath/ Mullingar	€8,000 - €20,000	€8,000 - €20,000	€130	€140
Longford	€6,500-17,000	€6,500 - €17,000	€120	€120
Kilkenny	€15,000	€15,000	€80	€80
Westport	€8,000-15,000	€8,000-15,000	€100	€100
North Kerry	€23,000	€27,000	€110	€130

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For further details please contact Kirsten Connolly, Elevate PR on (01) 662 5652 or email Kirsten@elevate.ie or eimer@realestatealliance.ie on 086 8249094.

Note to editors:

Membership of Real Estate Alliance Ltd is only open to firms led by members of the IAVI or S.C.S.

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