Land Values Look Set to Rise in 2011 According to Vinci Partners

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Vinci Partners announce a rise in land values for 2011 and beyond

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The London based Land Investment Firm Vinci Partners have announced their forecast for land prices in 2011 and beyond. Despite January showing a slow start to the year, Vinci Partners are confident that 2011will be a prosperous year.

Based on figures from Knight Frank Farmland Index, Vinci Partners indicate that farmland values rose significantly in 2010, with the year ending on a 13% increase in land value. It is being predicted that values in 2011 will rise by approximately 7% as a result of financial stabilising.

As an indicator of land investment’s strength over the last year, this investment type has outperformed the stocks and property markets by approximately 3%. The year on year figures reveal that the stock market (relating to the FTSE) and property values (relating to prime central London properties) rose by 10%. Average property values rose by much less in 2010 with figures ranging from 3%-4% according to various mortgage lenders.

Vinci Partners Managing Director Hider Eshpari commented “These figures reaffirm what we’ve always believed in when it comes to land investment; it continues to outperform other investment options because of the political and financial landscape in the UK. Land is a premier asset to have for any investor as it has performed so well against other options.”

The announcement comes after a year of financial uncertainty in the UK markets and for many in the UK. The recent bout of cuts from the coalition government has caused major uncertainty amongst the property and stock markets. However buying UK land has been described as one way of beating the downturn as Hider Eshpari continues to explain, “We urge any potential investor to invest sensibly during these times; you want a market that is performing consistently and safely and these figures are indicating that land investment is where people should be putting their hard earned cash.”

Vinci Partners reveal that the forecast for 2011 is looking very good especially within agricultural and farm lands. Hider Eshpari expands on this point “Any land that is growing crops or produce will help push land values up in 2011 as commodities, such as food, rise significantly. With agricultural and farm land in high demand and short supply this is further pushing the price up, so it makes sense to invest in land.”

The positive trend of rising agricultural land values looks set to continue beyond 2011 as well, with a forecasted growth of up to 16% by 2012 according to Vinci Partners. The news comes at an exciting time for land investment and for Vinci Partners who are experience growth themselves as their business looks set to thrive in the following couple of years.

Notes for the editor:
Vinci Partners are a land investment firm located in the City of London. Vinci Partners specialise in the acquisition and sale of strategic land sites throughout the UK and Europe. Land investment lets individuals diversify their portfolio by investing in house sized plots of land with the aim of returning more on client’s investments than they would otherwise get with bonds or equities.


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Joanna Riley

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