The price of farmland in Hungary is expected to shoot up in the spring of 2011 when the suspension of land purchases by foreigners expires, business daily Vilaggazdasag said on Monday.
Experts told the paper that it is highly unlikely Hungary will be able to extend the suspension which was negotiated when the country joined the European Union in 2004.
Today around 40-50 hectares costs 600,000-800,000 forints (EUR 2,200-2,900) compared to around 2.5 million forints in neighbouring Austria.
Although farmland prices are relatively cheap compared to Austria, land here is not underpriced in terms of average revenue per hectare, the paper said.
Agricultural policymakers are worried that many Hungarian farmers could find themselves priced out of the market, and argue that the suspension should stay in place until 2014.