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Arad: Transactions with farming land doubled against 2016
The number of transactions with farming land doubled in the past year in Arad county, where over 18,000 cintracted were signed, many acquisitions being made by foreigners who now control about 20% of the county’s tillable area. Land in the field area of the county was sold with 12,000 euros/ha, while the average price is 7,000 euros, 15% more than in 2016.
Representatives of Arad Farming department told News.ro that since the appearance of law 17/2014, allowing foreigners to buy land in Romania, over 35,000 transactions have been made, of which more than half are by foreign citizens with companies outside Romania.
Since April 2016 to July 2017, 18,000 transactions were made, more than in 2014 and 2015 (17,000 transactions in both years).
According to Ioan Martin, the head of the Department for Agriculture in Arad County, prices for land in the field areas of the county are between 8,000 and 12,000 euros, the most expensive being close to Arad municipality and in Curtici, Chisineu-Cris and Santana areas.
“People are looking for land which can be compacted, to be exploited with lower resources. Land located close to accessible roads and in field areas sell quickly,” said a real estate agent, Marius Igrisan, whose company made 60% more transactions with tillable land in the last 12 months, compared to the previous period.
Prices are lowest in hilly areas like Gurahont, where costs are fro, 2,000 to 5,000 euros/hectare.
On the average, a hectare of farming land costs 7,000 euros in Arad county, a price increase of 15% being recorded in the past year on the background of the high number of transactions.
Statistic data about areas held by foreign citizens have not been updated, but in April 2016 people and companies from other countries owned over 30,000 ha of tillable land of 350,000 ha in Arad county. According to estimates, 40,000 ha belong to foreigners now.
The area owned by foreigners has not grown as much as the number of sales-purchase contracts because most transactions were made between foreign citizens.
The tillable area controlled by foreigners may reach 70,000 ha, which is 20% of farming land in Arad county.