Dynamics in the Price and Profitability of Agricultural Land as an Investment Asset Cover Image

Динамика в цената и доходността на земеделската земя в качеството ѝ на инвестиционен актив
Dynamics in the Price and Profitability of Agricultural Land as an Investment Asset

Author(s): Stefan Asenov
Subject(s): Economy, Business Economy / Management
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: farmland; agricultural land; investment asset; land price; profitability

Summary/Abstract: Agricultural land is a fundamental and limited natural resource, forming the basis of nutrition, food security, and population sustenance, and serving as the starting point of the agri-food chain. Agricultural land possesses several unique and valuable characteristics as a relatively new investment asset, with investments in it considered long-term and low-risk – representing an opportunity for diversification of investment portfolios. There are two main forms of investing in real estate, specifically farmland: direct (purchase, exchange, inheritance) and indirect acquisition. The aim of this study is to analyze trends in the price and profitability of agricultural land as an investment asset, focusing on income from the perspective of asset price appreciation. It has been concluded that the return on farmland is significantly higher compared to other representative investment alternatives (shares, shares of funds, real estate and interest on deposits) for the reference period 2010 – 2021, is a low-risk investment, with high profitability with reported risk and creation of a secure cash income.

  • Issue Year: VIII/2024
  • Issue No: 3
  • Page Range: 145-154
  • Page Count: 10
  • Language: Bulgarian
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