As investors begin to view land as a more attractive commodity,
prices are set to increase on a global scale.
The demand for international farmland values has remained positive, according to a report from consultants Savills. However, the majority of mainstream investors are still not looking at the potential the land has.
Savills expects that this will change over the coming few years.
Meanwhile, in the short term, the consultant believes that demand for agricultural investments
from family offices, financial investors and also the sovereign wealth funds will grow.
In particular, Savills said that as world farmland markets become increasingly accessible and new emerging markets open up, farmland will become more prominent as an asset.
"Farmland as an asset will increasingly become a sought after investment. Investors looking to invest in farmland purely for wealth preservation, as part of their portfolio diversification strategy, will find the developed markets more appropriate, even though values are higher, reflecting the sophistication of the agricultural industry," the report said.
- Tuesday 25 January 2011