Global farmland continues to hold its value with an average compound annual growth of 10.2% since 2002, Savills latest research reveals.
Australasia led annual performance, with 2025 data showing an average annual growth of 10% in farmland values, followed closely by Central Europe at 9% according to Savills Global Farmland Index*.
While the report indicates that average global farmland value growth did not meet the exceptional strong performance recorded during 2024, values continued to rise in 2025, reflecting continued demand for productive land and high-quality agricultural assets. South America has achieved significant long-term appreciation, although growth eased in 2025 following the exceptional gains recorded during 2024. Western Europe, as a mature market, has higher starting values that track moderate growth since 2002. North America has likewise shown stability through its long-term, consistent gains. Unlike commodity prices, which have remained volatile since 2002, global farmland values continue to follow a general upward trend, indicating stability in the current market.
The report also reviews the pressures being created by human water consumption and agricultural production, as investment into new infrastructure is required to determine future farmland resilience. This is exemplified in Portugal’s Algarve, where Savills research reveals a regional pressure on water supply and irrigation efficiency. With over 220 million m³ of water being abstracted annually, agriculture has emerged as its biggest user, requiring the first phase of the Alvor-Bravura modernisation project to begin development. This will see open canals replaced with a modern, closed pipe network, reservoir, and pumping system, expected to create savings of approximately 19 million m³ of water per year.
As Savills September 2025 Spotlight indicated, the mitigation of water use has a direct impact on the use of farmland to grow crops such as almonds, avocados, pistachios and olives, which offer both environmental and cash flow benefits. This is a reminder that while regional markets, such as Western Europe, show stability within the farmland index, there can be significant local and regional variations which must be monitored to reach long-term investment opportunities.
Ed Horton, Director of Investment Management at Savills, comments “Strategic investment in regions facing growing climate pressures will be critical to the future performance of global farmland. Meanwhile, farmland’s relative stability and the potential range of land uses continue to strengthen its appeal as an asset class of choice for institutional investment.”
For the full report click here.
*Savills Global Farmland Index offers insight into the market, allowing investors to undertake comparable analysis within global markets. This research is conducted using 15 key farmland investment markets: Argentina, Australia, Brazil, Canada, Denmark, France, Germany, Ireland, New Zealand, Poland, Romania, Spain, the United Kingdom, the United States and Uruguay. These are then grouped into five major geographical regions of Western Europe, Central Europe, Australasia, North America and South America. By necessity, average values are used. It should be noted that within countries there can be significant local and/or regional performance.