Which category of real estate has suffered the least depreciation due to the economic crisis?
If someone had told us 15 years ago that the safest investment would be agricultural, cultivable land, we would have thought they lacked imagination.What we will now attempt is to describe the market's behavior during this period in relation to the value of cultivable farmland. One of the most significant factors affecting the value of real estate, including agricultural land, is the law of supply and demand.

The supply of land for sale has decreased over the last three years, mainly because owners now recognize the necessity of owning a plot to supplement their income. As a result, they tend to utilize their farmland themselves rather than selling it. On the other hand, potential buyers—due to the economic crisis and unemployment—are increasingly turning to the primary sector. Consequently, land demand has risen over the past two years, even though demand for farmland during the previous decade (excluding the last two years) was very low. This was because rising property values combined with increased borrowing capabilities made investments in residential and commercial real estate more appealing.

Another factor attracting a different segment of buyers to agricultural land is recent developments in Cyprus, which highlighted the unreliability of banks in safeguarding citizens' deposits. This group also observes the continuous drop in prices in other property categories such as homes, plots, and shops. Despite these appearing to be ideal investment options, they choose to invest in farmland, believing that other real estate types will continue to depreciate. Therefore, at present, farmland seems to many to be one of the most reliable options for placing their money—though the unpredictable and insatiable tax-collection mentality of our country could challenge this view.

Key reasons that have prevented further price increases in this category include a lack of liquidity and borrowing capability. For most households, banks are reluctant to provide loans. Even when approved, buyers must have at least half of the market value in cash and no other active loans.

It is also worth mentioning that the sale price of a property during a crisis depends on the owner's need for immediate liquidity—even for farmland. Thus, the property's price may be reduced to attract potential buyers.

Currently, the demand for purchasing and renting land has remained at the same price levels over the last decade.

In Argolida, prices are determined by the location of the farmland and other significant factors such as tree condition, irrigation potential, access, availability of windbreakers, etc. A barren plot in the valley is sold at nearly double the price of a mountainous or hillside one. Likewise, farmland with citrus trees in the valley is sold at double the price of barren valley plots.

Specifically, 1 stremma of barren land in a semi-mountainous area sells for €1,000 to €2,000. In the valley, barren land sells for €2,000 to €3,500, while 1 stremma with citrus trees can sell from €4,000 up to €10,000 in exceptional cases.

We must note that these prices are approximate and assume the optimal use of the land is for cultivation.

From our perspective, we observe increased interest in purchasing farmland, but unfortunately, factors such as limited loan approvals and lack of liquidity hinder transactions. To these, we must add the lack of large land plots. Investments require extensive areas, and due to successive inheritances, land is increasingly being divided among more heirs.

The rational development of the primary sector—potentially transforming it into a heavy industry—and a return to the land could provide an effective solution to the ongoing national crisis.