Forest and land listings

Want to buy a plot?

We sell large plots of land for investment, cultivating and felling:

• Large forests
• Large plots of arable and farmland
• Farmland with forests
• Land with farms and other agricultural companies

You can also buy smaller plots, which increase in value over time:

• Woodland
• Farms with surrounding gardens and land
• Smaller farmland
• Country houses with associated farmland and forestland

More information

Why is forestland a profitable investment?

Forests are sometimes referred to as “green gold” among bankers and investors. This is because the value of a forest tends to grow in almost any economic situation, as the forest’s natural growth and maturation does not depend so heavily on business cycles. Investing in a forest also has a certain emotional value – it provides the opportunity to invest in Estonia and take care of a small part of the country.

Forests as investments
Forested assets help you mitigate risk in an investment portfolio. Whatever stage of business cycle the world is in, at least a moderate increase in the value of forestland can be assured. Forests are invariably the first to emerge from economic recessions, while maintaining their liquidity.

Please bear in mind that forests are not short-term investments or the means for quick returns. Considering biological growth, the annual return of forestland can be 3-5%. With professional and prudent management, this can increase to up to 10%.

Forestland is a relatively safe investment, as changes in forestry do not take place as fast as in other areas of society. Should the price of timber not meet your expectations when your land matures, you will not be at a loss if you choose to postpone a year before selling your timber. Similarly, favorable market conditions can bring about a marked increase in prices: for example, between 2017 and 2018, the price of softwood and pulpwood increased by up to 50%.

According to the Private Forest Center, the prices of all types of wood have steadily increase (with minor fluctuations) from 2011 until a recent decline that began at the end of 2018.

Is forestland a suitable investment for you?
Comparatively small investments, involving smaller plots of land, might be suitable if you have a personal interest in the enhancement of forests and forest management. Forests are liquid assets that increase in value over time, no matter their volume.ul.

Forestland, as an asset of national importance to Estonians, is a slightly different asset than shares or credit financing. It often has a degree of emotional value that arises from knowing that you are doing your part for ecological sustainability, or from the simple beauty of watching your forest grow. Forestland also offers products for the owner’s private use, such as firewood, berries, and mushrooms.

Forestland is a relatively safe investment, as changes in forestry do not take place as fast as in other areas of society. Should the price of timber not meet your expectations when your land matures, you will not be at a loss if you choose to postpone a year before selling your timber. Similarly, favorable market conditions can bring about a marked increase in prices: for example, between 2017 and 2018, the price of softwood and pulpwood increased by up to 50%.

According to the Private Forest Center, the prices of all types of wood have steadily increase (with minor fluctuations) from 2011 until a recent decline that began at the end of 2018.

If you do not want to deal with forest management yourself but would like forestland to be part of your assets, you can compile a forest portfolio with us. A more sizable investment could start with at least 500 hectares, a size that allows for annual income. After the deduction of expenses, one hectare can provide an income of about 100 to 150 euros per year. Accordingly, a 500-hectare forest portfolio would yield 50,000 to 75,000 euros per year, for several decades.

Forests typically account for 20-30% of a well-diversified investment portfolio.

A forest investment provides the greatest returns if trees are felled when timber prices are at an optimal level, not when liquidity is quickly needed. Since changes in forestry take place slowly, it is advisable to wait for the right moment before divestment, instead of selling forestland based on the short-term need for liquidity.

Risks of investing in forestland

Things to bear in mind when investing in forests

Forestland is an investment for a person who values comfort and security. Compared to other investment opportunities, it is highly safe, because a forest is a biological asset with certain growth. Many things might otherwise happen to the economy, during which forests will still keep growing, resulting in sustained demand to buy forestland in any business cycle. The following should be kept in mind when investing in a forest:

It is a long-term investment – forests are not suitable for earning quick returns
Compared to other investments, investing in forestland is a safe way to preserve assets
Depending on management style, forestland typically produces an annual return of 3-10%
Higher returns from forestland are delivered by prudent management, with felling and the sale of timber timed to elevated market demand
In order to diversify risk, the share of forestland in an investment portfolio should not exceed 20-30%
A well-balanced forest portfolio will include forests at different growth stages, allowing for the income from mature forests to help cover the costs of younger forests
Upon purchasing forestland, be prepared to make subsequent investments that increase the productivity and quality of the newly acquired asset
Forestry equipment is very expensive, which most investors will not need to buy. Instead, all professional forest management services can readily be found on the Estonian market

Before investing in forestland for the first time, take the time to get acquainted with the forestry industry. Use the help of experienced professionals to help deliver the highest possible level of return.

EstEst PR – over 25 years of experience in forest-related transactions.

Are you looking for a reliable partner for your first forest investment? As a forest management company, we have extensive experience.

We have a large number of plots for sale on an ongoing basis, and help buyers with various investment plans to find plots that best meet their needs.

Do you need help with buying your first forest? We help with administrative matters related to land purchase and, if desired, subsequent forest management. Contact us at +372 514 5215 or via email at info@est-land.ee.

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