12131 What is the price of farmland in Tuscany right now??

Hi there, A friend of mine has just been given the opportunity of buying 3.5 hectares of farmland adjacent to his property and he has asked me if I think that the sale price of E67,000 is reasonable. I have no idea so I thought I would post the question on here!

The land has a small olive grove (40ish trees) a couple of cherry trees and a few walnut trees. The rest is arable.

The property is located outside Montalcino, very picturesque but I feel that the land is worth a lot less considering the credit crunch!

Any help on formulating a response to the builder who owns the land would be really helpful. The builder has only just bought the neighbouring house with the land and is seperating the land from the house and renovating the house only and will be selling this seperatly with a smaller garden.

Many thanks,

Category
Property Sales/Rental Advice

Hi

Montalcino -- WOW!

For an more accurate estimate I suggest you take advice from a geometre. These are the guys who know current land values. There are a string of reasons for how land is priced here in Italy, including number of olive trees, age of said trees etc. etc etc.

Sounds a bit expensive to me but previous advice very sound. For goodness sake don't forget the extras - taxes, solicitor working for you etc etc.

I think 20.000 a hectare in that area is pretty good. It depends on the agricultural value of the land, how level it is, exposure to the elements etc - but 2 euros psm is very low much lower than here - but it depends on how agricultural the area is...

Hi, also to me it seems a little bit esagerated: 20.000 € a ha. Recently one of my clients has bought vineyards (vigneto) around Siena for 20.000 € per ha. Better to search for a geometra is looking for an agronomo as we always do

[quote=Knightsbridge2;116079]Hi there, A friend of mine has just been given the opportunity of buying 3.5 hectares of farmland adjacent to his property and he has asked me if I think that the sale price of E67,000 is reasonable. I have no idea so I thought I would post the question on here!

The land has a small olive grove (40ish trees) a couple of cherry trees and a few walnut trees. The rest is arable.

The property is located outside Montalcino, very picturesque but I feel that the land is worth a lot less considering the credit crunch!

Any help on formulating a response to the builder who owns the land would be really helpful. The builder has only just bought the neighbouring house with the land and is seperating the land from the house and renovating the house only and will be selling this seperatly with a smaller garden.

Many thanks,[/quote]

Don't forget that Montalcino produces Brunello so you can expect prices in this area to be generally higher than elsewhere.
The price that Guther quoted depends on where in the Province his client purchased, as well as what type of vineyard he purchased.

According to the Ufficio del Territorio di Siena, the average price (official figures) in Euro per Ha of agricultural land around Montalcino for 2008 was:

Olive grove: 27,222 x Ha
Arable land: 14,105 x Ha

Compare this to the cost in Euro for a vineyard in Montalcino:

Brunello: 348,897 x Ha
Basic vineyard (non-Brunello): 46,449 x Ha

Compared to Chianti: Radda, Castellina, Gaiole etc

Chianti Gallo Nero: 121,140 x Ha

If the sale price for the entire plot of 3.5 Ha is being offered at 67,000 euro, then it looks like a good deal to me. Do check though that the vendor is not asking that amount per Ha.

I would stress that it is important that your friend clears up any issues concerning prelazioni agrarie beforehand.

These are of course average prices for last year. It will be up to your friend to negotiate, but at least this is a starting point.

Hope this helps.

Nothing like good, sound, knowledgeable advice, Charles. Very interesting to know those variations in prices, which make a lot of sense. Thank you again.

[quote=Gala Placidia;121147]Nothing like good, sound, knowledgeable advice, Charles. Very interesting to know those variations in prices, which make a lot of sense. Thank you again.[/quote]

The thing to remeber here Gala is that these are average values and they are not really cast in tablets of stone. In the end, the individuals involved will value the property qualitatively, as well as quantitatively.

These values are helpful though, because it means that an investor/buyer has some information with which to base his/her decision on. For example, one couple I know up in Piemonte have had difficulties with a prelazioni agrarie issue with their somewhat argumentative neighbour. In realising that his position is rather tenuous, he decided to offer them 1Ha of his land at a ridiculous price.

I looked into the matter, and from the official figures I could see that the price he quoted them is almost 4 times more than the average value for land in their area. Of course, you expect to negotiate, but why would you pay over the odds for something, especially when in this particular instance, the problem stems from an unpleasant neighbour.

Just as a matter of interest, in 2005 the average value of an olive grove in Montalcino was 23,076 Euro per Ha, and Brunello vines 296,605 Euro per Ha.