On the German agricultural land market, the amount of land being traded is steadily declining, whilst prices and turnover continue to rise. This is shown in Colliers’ new ‘Agricultural Market Report 2026/2027’. The area of arable and grassland traded fell by around 34 per cent between 2015 and 2024 to just under 82,800 hectares. Nevertheless, the total transaction value reached its highest level in the past ten years in 2024, at around 3.1 billion euros. On average across Germany, arable land cost around 40,500 euros per hectare – around 30 per cent more than in 2020.
Purchase prices for farmland vary considerably from region to region
Whilst arable land in Bavaria cost an average of around 92,900 euros per hectare in 2024, 87,700 euros in North Rhine-Westphalia and 62,000 euros in Lower Saxony, prices in the eastern German federal states were in some cases considerably lower. In Brandenburg, an average of around 15,000 euros per hectare was paid; in Saxony, 17,100 euros; in Saxony-Anhalt, 24,400 euros; and in Mecklenburg-Western Pomerania, 25,200 euros. In addition to the soil’s productivity, the size of the plots on offer also plays an important role. Furthermore, larger plots are often put up for sale in eastern Germany, whereas in western Germany it is often smaller plots that are sold.
Price trends are coinciding with a steadily declining supply of land. Of the approximately 16.6 million hectares of agricultural land currently in Germany, around 636,000 hectares have been lost since 1995, primarily due to the expansion of built-up areas and transport infrastructure.
Eckbrecht von Grone, Head of Land & Forestry at Colliers, says: “Given the current high purchase prices for arable land, it makes more financial sense for many farmers to lease additional land rather than buy it. This allows them to expand their farms without tying up significant financial resources in the land. For landowners and investors, in turn, the high demand for leased land and long-term lease agreements offers secure and attractive prospects for returns.”
Rising rents are increasing cost pressures on farms
Around 60 per cent of agricultural land in Germany is leased. The trend in lease prices is therefore a significant cost factor for the majority of farms. The average lease price for arable land has risen by around 47 per cent over the past ten years – from 277 euros per hectare in 2013 to 407 euros in 2023. Particularly high lease rates are seen in Schleswig-Holstein, Lower Saxony and Bavaria.
At the same time, structural change in agriculture is continuing. Between 2010 and 2025, the number of agricultural holdings fell by around 15 per cent. The area under cultivation, by contrast, declined by only around 1 per cent over the same period. Holdings of 100 hectares or more account for around 15 per cent of all holdings, but now cultivate more than 64 per cent of the agricultural land.
New opportunities for higher yields are fuelling competition for agricultural land
Organic farming has grown since 2010 and now accounts for around 11.5 per cent of agricultural land. The proportion of organic farms stands at 14.1 per cent. According to Colliers, organic farms achieve only around 50 per cent of the yields of conventional farms. Government subsidies are therefore crucial to the economic viability of these farms. Consequently, there is a tendency for lower-yielding sites to be farmed organically. Organic milk accounts for around 4.5 per cent of the total market.
Photovoltaics and wind energy offer additional sources of income. Depending on the location and the terms of the lease, ground-mounted photovoltaic installations can command rents of around 3,000 to 4,500 euros per hectare per year. For wind turbines, lease payments often range between 50,000 and 100,000 euros per turbine per year. This is also fuelling competition for suitable sites.
Caspar von Wilamowitz, Senior Consultant for Land & Forestry at Colliers, says: “Agricultural land remains an attractive asset class in the long term. The limited availability of land, sustained high demand, potential for additional income and positive performance all speak in favour of this market. The significant regional differences in purchase prices between western and eastern Germany also offer investors a range of entry opportunities. However, the quality and profitability of the land, as well as its long-term prospects for use, are crucial.”
