Relationship between rent prices and agricultural land prices

Mihaela Mihailova
Agricultural Academy, Institute of Agricultural Economy, 1113 Sofia, Bulgaria

Abstract

Mihailova, M. (2022). Relationship between rent prices and agricultural land prices. Bulg. J. Agric. Sci., 28 (1), 26–35

The aim of the author is to first assess the factors influencing and the importance of their impact on agricultural rents and land prices. Much of the land in Bulgaria is leased and that requires an assessment of the relationship between lands rent and land price. The price of land is mainly influenced by the location, size and purpose of the purchased land. The average market price of agricultural land, regardless of location, size and purpose of land use, show significant differences from year to year and from region to region. Since 2010, the percentage of land for rent and the market price of land have been called the capitalization rate. The average growth rate of land rent should not exceed 6%, nor should it lead to a mismatch between the development of land rent and land prices or to a disproportionate increase in land price.

Keywords: land relationship; agriculture; land prices; land markets

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