Agents specialising in the transfer of entitlements report that transactions are progressing well, with most having completed between 70% and 80% of their normal business.

Some agents report slight changes to the type of transactions carried out in 2022 due to new CAP from next year.

This has increased the number of entitlements changing hands through sales without land.

This method of transaction has been running at a low level in recent years due to the 20% clawback on the sale of entitlements without land.

This rule remains in place with a two-year amnesty being introduced in 2023 removing the clawback rule. Agents explain that some entitlement holders are fearing lower returns in 2023 under the new regime and as such are willing to take their chances and trade now despite the clawback.

Value

Entitlements worth €250 to €400 are trading from 2.2 to 2.5 times their value with some high-value entitlements trading for 2.7 times their value, although the number of these entitlements is reported as low.

Entitlements traded in the form of a one-year lease remain the dominant type of transaction.

There is no change in the value breakdown with typical deals for entitlements worth €250 to €400 averaging at 58% to 60% of the value of entitlements reverting to the lessor and the remainder to the lessee.

This increases to 70% to 75% for some high-value entitlements of €500 to €600 upwards and reduces to 50% for low-value entitlements.