The issue of fundamental appreciation of agricultural land is rather an exceptional matter. An example can be a change in the zoning plan and the transfer of land from agricultural use to construction. Then there is a significant increase in the price of land due to the change of use. More common influences on the amount of investment appreciation are, from a macroeconomic point of view, the development of market prices for agricultural land, the development of demand in this segment of the real estate market, the development of inflation and interest rates, and possible legislative restrictions.
From a practical point of view, we will rather focus on the risks of holding land. In most cases, a lease agreement is concluded for the land, on the basis of which the tenant (farmer) uses our land and is obliged, among other things, to pay us the lease fee (rent). We should ensure that the agreed lease conditions reflect the real conditions on the market at the given time, especially the amount of the lease and the lease period. By concluding a disadvantageous lease agreement, we can significantly devalue the investment, and during the subsequent sale, we will have a problem finding interested parties at the required price. Furthermore, it is necessary to check at least once a year that the lessee complies with the terms of the lease and does not use the land in a way other than what was agreed upon. Once a year, it is appropriate to check the valid zoning plan and regulatory plan for the given cadastral territory due to the regime of land use and the creation of possible rights of pre-emption, which arise by law upon the entry into force of the zoning or regulatory plan according to § 101 paragraph 1 of Act No. 183/2006 Coll. , of the Construction Act. Another issue that we should pay attention to is any ongoing land improvements.