The "Market Report Forest 2021" of the real estate consulting company Colliers provides an overview of the situation of the forest in Germany from a forestry and ecological point of view. The analyses show that the forest investment market as well as the investment in forest real estate ensure a good planning ability with regard to returns and secure good yields. This is to be expected because the demand for the ecological valuable material wood is increasing more and more. A forestry property is lucrative if it is purchased at a good purchase price.
Assuming land values remain constant, an operating return of 1.5 percent per year can currently be expected in Germany. According to Colliers, a hectare of forest land in Germany costs an average of around 12,700 euros. It should be mentioned, however, that there are large price differences between regions. While a small piece of forest in Upper Bavaria can cost 60,000 euros, one pays only 5,000 euros for a forest area in Thuringia.
In principle, investing in forest land is a long-term form of investment. Long-term returns can be expected not only due to the high demand for wood. Forest investments also enjoy advantages in inheritance tax law. The download of the "Forestry Market Report 2021" can be requested on the Colliers website.
Source: Colliers
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