Farmland property has outperformed commercial markets for the third consecutive year, according to figures from the IPD UK Rural Property Investment Index.
Rural property delivered a total return of 8.2% last year, more than double the 3.5% delivered by commercial property.
The result was also a significant improvement on 2008’s total return of 1.7%. IPD said the improvement was driven by capital growth, which increased 6.3% last year.
The index figures show all regions delivered positive total returns in 2009, led by the South East, which saw double-digit performance at 14%.
The biggest year-on-year improvement was in the North West & North East which, in 2008, saw -5%, the lowest total return recorded by any region since 1991. Performance bounced back with strong capital growth, to return 7.3% in 2009.
nathan.cross@estatesgazette.com
