In times of macroeconomic uncertainty, inflation and an unstable real estate market, more people are questioning where to invest their money. Should they invest in rental properties, a garage in a busy area, or agricultural land?
Agricultural economist Žarko Galetin told that investing in agricultural land is more profitable in the long run compared to buying apartments or garages. The highest profits come from land used for active production, particularly intensive crops like vegetable farming and greenhouse production, where smaller areas can generate significant earnings.
While investing in apartments and garages is often seen as a safe, long-term option with regular rental income, the market for agricultural land has seen substantial growth in recent years, especially in Vojvodina.
According to Galetin, agricultural land is more profitable in the long term because its value continuously rises. He advises against selling agricultural land to buy real estate, as this forfeits a valuable resource with greater growth potential.
Galetin highlights that the land market is more promising than the real estate market, both in terms of sales volume and prices. Active production on agricultural land generates much higher profits than rental income from properties.
He also emphasizes that investing in land makes sense only if it’s used for production. Empty land or land only rented out won’t generate profit.
Intensive farming models, like vegetable production and greenhouse farming, are particularly profitable. Galetin notes that the success of farming depends more on the method used than the land size. For example, intensive farming can bring substantial returns, while extensive agriculture is less profitable.
Finally, Galetin advises that land investment can bring serious profits for those interested and experienced in farming. He stresses that agricultural land should be viewed as a resource for production, not just passive property to rent out. Active farming on the land is the key to making a profit.
