What is overgrown farmland?
Overgrown farmland is former arable land that has been left unused and now has young scrub growing on it — typically birch, alder, willow, or aspen. This is a very common situation in Estonia, especially in Southern and Eastern Estonia, where many farms were abandoned after the restoration of independence.
Value of overgrown land vs other land types
| Land type | Average price (€/ha) | Annual rent (€/ha) |
|---|---|---|
| Arable land (good quality) | 4,000–8,000 | 80–200 |
| Grassland (maintained) | 2,000–4,000 | 40–100 |
| Overgrown former farmland | 500–3,000 | 0 (unused) |
| Forest land (mid-age) | 2,000–5,000 | — |
Three options for overgrown land
1. Sell as is
The simplest option. Metzfund buys overgrown land too — you do not need to clear or restore the land beforehand. You get a fair price and a fast transaction.
2. Clear and lease
If the soil quality is good, it may make sense to invest in clearing (1,000–2,500 €/ha) and then lease the land. The rental rate can be 80–200 €/ha per year.
3. Officially register as forest
If the land already has 15+ year old scrub, it can be re-registered as forest land. This can increase the land value, especially if the scrub composition is good (birch, spruce).
Decision table
| Situation | Best option | Reason |
|---|---|---|
| Land is far away, you do not use it | Sell | Free capital, no land tax |
| Good quality soil, good location | Clear and lease | Long-term income |
| Old, dense scrub (15+ years) | Register as forest | Increases land value |
| Inherited land you do not want | Sell | Quick solution |
"Many people are surprised to learn that their overgrown land has value. Former farmland in a good location in particular can be worth more than expected." — Metzfund
Frequently asked questions
Does Metzfund buy land in very poor condition?
Yes, we also buy uncleaned and overgrown land. The price depends on the location and potential of the land.
Is income tax payable on selling overgrown land?
Yes, if the sale price exceeds the acquisition cost. For inherited property, the tax treatment is often more favourable.
Does clearing the land pay off?
It depends on location and soil quality. In good farmland areas (Lääne-Virumaa, Järvamaa) it often does. On land with poorer soil, selling is more sensible.