Agricultural property returned 9.9% in 2012, according to the latest data from IPD.
Although this is a fall from the stellar 15.7% total return achieved in 2011, agriculture has still outperformed all other classes of real estate.
By comparison, the IPD’s commercial property index returned 2.7% in 2012.
The total return for agricultural property was driven by 8.2% capital growth, and 1.6% income growth, unlike commercial real estate, whose total returns have been propped up by income growth in recent years.
Agricultural property is perceived as a safe investment choice, and poor investor confidence in the UK economy has increased its appeal to buyers looking for capital preservation, said the IPD.
sophia.furber@estatesgazette.com
