Supply on the German agricultural land market is tightening noticeably, while land values continue to climb. As demonstrated by the latest Agricultural Market Report 2026/2027 from property services firm Colliers, the traded volume of arable and grassland dropped by roughly 34 per cent between 2015 and 2024 to just under 82,800 hectares. At the same time, total monetary turnover reached the highest level of the past ten years in 2024 at around 3.1 billion EUR. Nationally, one hectare of arable land recently cost an average of approximately 40,500 EUR, representing a 30 per cent increase compared with the 2020 level.
Pronounced regional price differences and lease pressure
Purchase values vary substantially across the federal territory. The front-runner in arable land prices is Bavaria, with an average of around 92,900 EUR per hectare, followed by North Rhine-Westphalia with 87,700 EUR and Lower Saxony with 62,000 EUR. In the eastern German federal states, by contrast, the price level is considerably more moderate: Brandenburg recorded an average of 15,000 EUR per hectare, Saxony 17,100 EUR, Saxony-Anhalt 24,400 EUR, and Mecklenburg-Western Pomerania 25,200 EUR. Decisive factors for this spread, alongside soil productivity, include plot sizes, as extensive units dominate the market in the east, whereas smaller parcels are predominantly sold in the west.
These price increases coincide with a continuously shrinking total land reserve. Of the roughly 16.6 million hectares of agricultural land, around 636,000 hectares have been lost to settlement and transport infrastructure projects since 1995. In light of high acquisition costs, the leasehold segment is gaining in importance, particularly as around 60 per cent of agricultural land is leased. Within ten years, the average arable lease rose by 47 per cent, from 277 EUR in 2013 to 407 EUR per hectare in 2023. Bavaria, Lower Saxony, and Schleswig-Holstein record peak values here. Eckbrecht von Grone, Head of Land & Forst at Colliers, explains that leasing additional land makes more commercial sense for many farmers looking to develop their operations without tying up substantial financial resources in land. For owners, in turn, long-term contracts offer attractive income prospects.
Structural change and alternative forms of use
In parallel, structural change continues: between 2010 and 2025, the number of agricultural holdings fell by approximately 15 per cent, whereas farmed acreage declined by only one per cent. Although farms of 100 hectares or more represent just 15 per cent of all holdings, they now manage over 64 per cent of total acreage. Organic farming now accounts for 11.5 per cent of agricultural land and represents 14.1 per cent of holdings. Because organic farms produce only about half the yields of conventional farming per unit area, state subsidies are commercially decisive, which is why organic farming predominantly takes place on lower-yielding soils. The market share of organic milk stands at 4.5 per cent.
- —Arable land prices: Bavaria leads with 92,900 EUR per hectare, ahead of North Rhine-Westphalia (87,700 EUR) and Lower Saxony (62,000 EUR).
- —Lease levels: Nationwide arable leases rose by 47 per cent within a decade to 407 EUR per hectare.
- —Renewable energy: Ground-mounted photovoltaic installations achieve lease rates of 3,000 to 4,500 EUR per hectare per year; wind turbines generate 50,000 to 100,000 EUR annually per turbine.
Additional sources of income, such as wind power and photovoltaics, are further intensifying competition for suitable sites. Caspar von Wilamowitz, Senior Consultant Land & Forst at Colliers, highlights that agricultural land remains an interesting asset class as a result of limited availability, high demand, and steady value appreciation. The price differences offer investors nuanced entry points, with soil quality and long-term operating concepts being the decisive criteria.
