Issue link: https://maltatoday.uberflip.com/i/1542981
14 maltatoday | SUNDAY • 1 FEBRUARY 2026 NEWS Malta has highest farmland prices in EU Eurostat data shows Malta has the EU's highest arable land prices, a trend farmers say is being driven increasingly by recreational and non-productive uses rather than agriculture • Legislation has however, ensured rural leases in Malta are lowest in EU MALTA has once again topped the European Union in arable land prices, with average costs far above those in any other member state, according to Eu- rostat. But farmers say this reflects in- tense recreational and non-pro- ductive demand, not just agri- cultural value. The latest data collated by Eurostat, the EU statistical agency, shows that the average price of one hectare of arable land in Malta in 2024 reached €201,263, more than 13 times the EU average of €15,224. Across the bloc, land prices vary widely. The Netherlands and Portugal follow Malta in cost, with average prices of around €96,608 and €76,556 per hectare respectively, while east- ern European countries such as Latvia (€4,825), Lithuania (€5,590) and Slovakia (€5,823) sit at the lowest end of the spec- trum. For ordinary Maltese farmers, however, official averages may only tell part of the story. Mal- colm Borg, head of the farmers' association Għaqda Bdiewa At- tivi, argues that the true market price of agricultural land is sig- nificantly higher than Eurostat's figures suggest—in some cases four times the published aver- age. Borg points out that apart from the limited supply of land—Malta is the EU's small- est and most densely populated country—prices are also driv- en up by the high demand for land for recreational and other non-productive uses such as informal leisure spaces and the parking of trailers. These fac- tors, he argues, are driving pric- es up beyond what many farm- ers can realistically afford. The phenomenon of having land zoned for farming being purchased for non-agricultural purposes has been cited in var- ious reports as a key driver of Malta's elevated land values. In 2022 the Planning Author- ity's annual report explicitly noted that the parcelling of ag- ricultural land for recreational purposes is increasing pressure on land outside the develop- ment zone (ODZ). It observed a noticeable increase in rural land being subdivided and bought for non-agricultural use, a trend that has implications for how the market function and how planning decisions are assessed. The PA's 2024 annual report had also remarked that "the trends of applications in rural areas for formalisation of rec- reational uses post COVID has continued throughout the past year" and that applications for subdividing land and for uses like stables remained markedly high. This issue even led the govern- ment to introduce new regula- tions requiring arable land to be ploughed at least once a year, in an effort to preserve the agricul- tural potential even if it is being used for purposes other than farming. Għaqda Bdiewa Attivi had re- acted positively to the land pro- tection reforms, viewing them as a necessary step to curb rec- reational and non productive use. Across the EU, the trend of rising land values is not con- fined to Malta alone. Eurostat's data shows that arable land prices across the bloc rose by 6.1% in 2024 compared with the previous year, reflecting broad- er pressures on land markets. Yet, where Malta stands apart is in the degree of this pressure. Unlike countries with abundant rural land and predominantly agricultural markets, Malta's scarcity of available farmland and intense competition from non-farm buyers compounds the challenge of accessing land for genuine food production. For farmers, this has real con- sequences. High acquisition costs—exacerbated by rec- reational and speculative de- mand—make it harder for new entrants and established pro- ducers alike to expand opera- tions or even maintain existing holdings. This scenario risks undermining the sustainabili- ty of the agricultural sector. In countries with cheaper land, ag- riculture remains a more viable business proposition. But while the price of arable land in Malta is the highest across the EU, the average rent- al prices of arable land are the lowest. Malta's arable land rents average at around €92 per hec- tare—well below the EU aver- age of €295. Borg explains that this is large- ly because rents are regulated by legislation, specifically the Valuation of Agricultural Land Regulations (SL 199.2/2023). These rules establish a stand- ardised methodology for valu- ing agricultural land for lease purposes, which the Rural Leas- es Control Board uses to set fair rental rates. The new law came in the wake of a landmark decision by Judge Lawrence Mintoff on a rural lease case involving a small ag- ricultural plot in Qrendi. In that case, a landowner sought to repossess land from long standing tenant farmers, but the court rejected the claim and upheld the agricultural lease, reinforcing the legal protection given to farmers under Malta's rural lease laws. The judgment stressed that the law was in- tended to protect agricultural activity and provide stability to farmers, even when owners ar- gued their rights were breached. In a related 2022 decision, the court presided by Judge To- ni Abela ruled that rural land ought to be valued on the basis of its agricultural yield and use, not its recreational or specula- tive potential. The legislation keeps rents formally tied to agricultural val- ue, limiting their rise even in the face of strong market pres- sures, but it does not address the scarcity of available land or competition from non-ag- ricultural users, meaning that low rents do not automatically make farmland easier for farm- ers to access. JAMES DEBONO jdebono@mediatoday.com.mt Arable land prices in Malta are the highest in the EU, driven by limited availability and the increasing use of farmland for recreational purposes Malcolm Borg, head of Ghaqda Bdiewa Attivi