The methodology norms for the law regarding the sale of farming land plots were published in the Official Gazette of Romania on May 2nd 2014. The new law brings certain limitations for the buyers and establishes a certain procedure to follow to complete the transaction. The main stipulation of the law is the preemption right that certain categories of people have over a farming plot for sale: the co-owners, the neighboring owners, the Romanian State, through the State Assets Agency. According to the norm, the sellers registers at the mayoralty of the land plot, an application requesting the posting of the sale offer, but he no longer has to identify alone the list of preemptors.
The mayoralty must post for 30 days the sale offer at its headquarters and to transmit to the central structure form within the Ministry of Agriculture a file containing the list of preemptors, respectively copies of the posting application, of the sale offer and of the proving documents. The owner of the preemption right can manifest in writing his intention to buy, must communicate the acceptance of the seller’s offer and must register it at the headquarters of the mayoralty where the offer was posted, within 30 days. The mayoralty will have to post, within 24 hours after registration, the acceptance of the sale offer.
At this moment, Romanian companies with foreign shareholders own about one million hectares of farming land. The farming land plots have become increasingly attractive for the foreign investors. From Romania’s overall arable surface, of 9.4 million hectares, 77,100 hectares are owned by only ten companies with foreign capital, according to data released by the real estate consultancy company DTZ Echinox. Overall, the foreign investors own one million hectares of land and another two million hectares in lease, so they control a third of Romania’s arable surface. In the top of foreign capital companies who own farming land in Romania is the Read more
The Ministry of Agriculture has designed and subjected to public debate the Order draft for approving the Methodology Norms of the Law No 17/ 2014 regarding some measures to regulate the sale and acquisition of agriculture land plots outside the built area. The Order draft establishes the attribution of the local authorities and the steps the seller of an agriculture land plot must follow. Thus, Article 5, paragraph 1 stipulates that in order to sell the plot, the owner must submit to the mayoralty the application regarding the posting of the sale offer, along with the offer and a copy of the ID document of the seller private entity, a legalized copy or one certified for conformity by the mayoralty employees, the property deed for the plot (one of the following: acquisition contract, donation deed, delivery and receiving document, definitive and irrevocable Court sentence/ decision, patrimony liquidation document and other similar documents), and the “cadastral register excerpt issued no more than 30 days before the posting of the offer, along with the cadastral plan excerpt of the property in 1970 stereographic coordinates system, if the land plot has tabulation”. Read more
The price of Romanian farming land plots has increased by 25 times in the period 2002 – 2012, with an annual growth rate of 40% – the largest in 15 agriculture markets in the world – shows a report from the British consultancy house Savills. “The growth rate of the prices for farming land plots from Romania was double compared to the international market”, shows the report. The farming land plots are assets that have been under the attention of the non-agriculture investors only after the year 2009, as the traditional real estate market has fallen. The winners of these investments are those who have felt the growth trend ten years ago, considering that during this period, the value of each hectare of land has increased by an average of 40% per year.
The bulk of the growth came in the past seven years, along with Romania joining the European Union and as the foreign investors have started to poor cash on this market. The average price of the Romanian farming land is now 6,400 dollars/ hectare (4,600 euro/ hectare), similar to the prices from France and Brazil, but more expensive than in Australia, Hungary or Canada. The prices could be 20-30% smaller in the areas less favorable to the production of cereals and oleaginous seeds, but there is room for growth in the market in the following years. Hungary has the second lowest growth rate of prices among the 15 markets analyzed. Here, the prices have increased by 27% in one decade, reaching at 4,400 dollars/ hectare (3,300 euro/ hectare).