Farmland and Prospective land plots
Farm Land and industrial land offer a high level of portfolio balancing when investing in more risky alternative assets, the industrial land offer interesting returns in case of a prospective purchase in new development areas.
Global Trends (2020–2024)
Performance & Drivers:
Russian Market (Post-2022)
Sanctions Impact:
Asset Class Comparison
Conclusion:
Farmland offers inflation-resistant income globally but suffers extreme illiquidity and climate exposure. In Russia, it thrives on state subsidies but traps capital domestically. For Saint Petersburg, industrial/logistics land is constantly growing in high demand areas, the city expansion is creating new area and new logistic needs for the suburbs and all the region of Leningrad.
Performance & Drivers:
- Farmland: Avg. annual returns: 7–12% (combining crop yields + appreciation). Global prices up 15–20% YoY (2022–2024) due to food security fears and inflation hedging.
- Prospective Land: Speculative plays near urban expansion/renewable zones (solar/wind) surged 20–30% in growth corridors (U.S. Sun Belt, India's industrial zones).
- Sector Shifts: Water rights valuation up 50% in arid regions (2020–2024); carbon credit-linked farmland up 25% YoY (2023).
Russian Market (Post-2022)
Sanctions Impact:
- Farmland Boom: "Food sovereignty" drive up grain/oilseed planting. RUB-denominated values up 35% YoY (2022), stabilizing at ↑8–12% YoY (2023–2024).
- Prospective Land: industrial expansion fueled demand near logistics hubs. Prices up 15–20% (2024).
- Subsidies cover 40–60% of input costs; state banks (Rosselkhozbank) control 70% of agri-lending.
- foreign investor assets redistributed to domestic agri-holdings.
Asset Class Comparison
Attribute | Farmland/Prospective Land | vs. Real Estate | vs. Commodities | vs. Infrastructure |
Income Potential | Stable (4–7% yield + appreciation) | 6–9% (rental) | None (futures gain only) | 5–8% (regulated utilities) |
Liquidity | Very Low (illiquid parcels) | Low | High (futures) | Very Low |
Inflation Hedge | Strong (food/land scarcity) | Strong | Strong | Strong |
Geopolitical Risk | High (export bans, seizures) | High (expropriation) | Moderate | Extreme (nationalization) |
Carry Costs | Inputs, labor, taxes | Maintenance, taxes | Storage/roll costs | Regulatory compliance |
Russian Edge | State-backed demand (food security) | Warehouses viable | Domestic metals/grains | Sanctions-blocked |
Farmland offers inflation-resistant income globally but suffers extreme illiquidity and climate exposure. In Russia, it thrives on state subsidies but traps capital domestically. For Saint Petersburg, industrial/logistics land is constantly growing in high demand areas, the city expansion is creating new area and new logistic needs for the suburbs and all the region of Leningrad.
DMA INVEST understand the intrinsic value of land plots and related activities,
Contact us today to unlock the full potential of your land plot
Contact us today to unlock the full potential of your land plot
Contacts
Tel: +79052255567
email: info@dma-invest.com
Address: St. Petersburg, 191123, Zakharyevskaya st., 25 letter A, premises. 21-n, office 508
email: info@dma-invest.com
Address: St. Petersburg, 191123, Zakharyevskaya st., 25 letter A, premises. 21-n, office 508
About the company
Services
Contacts
OOO "DMA INVEST"
St. Petersburg, 191123, Zakharyevskaya st., 25 letter A, premises. 21-n, office 508
Russian Federation
Tel: +79052255567
email: info@dma-invest.com
St. Petersburg, 191123, Zakharyevskaya st., 25 letter A, premises. 21-n, office 508
Russian Federation
Tel: +79052255567
email: info@dma-invest.com