Agricultural land on the Іsland with a better return than other properties

Investment in rural areas of agricultural land in the UK have brought a better return compared to business and residential properties, despite severe market conditions in 2008 indicate that the testimony of the index for investment in property for IPD 2008.
Results of the show overall positive return of land of 1.7 percent for 2008, supported by increased rent and low volume of transactions. Capital values are in the segment decreased by 0.3%.
For comparison, the return of commercial properties is -22.1% and -15.3% of the housing.
Despite positive data on agricultural land that is the lowest level since 1998, when the return was -2.8%. Profitability of rent has remained stable in 2008 to 2.1 percent.
„Demand for rural properties remains strong and has some optimism,“ says Tim Jones, director at Carter Jonas – one of the sponsors of the index. „There are rare cases of increase in rent by 20-30%, while investors continue to benefit from opportunities of enhanced return …“
„The demand for agricultural land in the medium term looks stable,“ says Gerald Fitsdzherald Director Investments in property and assessments in Smiths Gore – another sponsor of the index IPD. „It is necessary to feed the growing population, along with additional demand for construction, environmental and infrastructure projects.“
In his return from the rent will be around 2% as there will be significant opportunities to increase the capital value of land in some areas.
IPD measured data with a total land area of over 647 thousand acres (2 618 sq. km) with a total capital worth 2.1 billion pounds.

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