Even before the Corona crisis, there was an increase in investment activity in the alternative asset class of land and forest real estate. This trend is continuing - demand for farmland and forestland among investors is also still rising. According to real estate experts, agricultural and forestry real estate promises a high return, as the value of the land is continuously maintained.
The experts at the real estate consulting firm Colliers International have also recognized this development and are now brokering profitable farmland and forest land in Germany and worldwide. Already in New Zealand, Australia and Canada, the consulting firm has established itself as one of the leading brokerage companies for land and forest real estate. According to experts, investments in the field of arable and agricultural land as well as in forestry and forestry are a good addition to the investment portfolio and at the same time reduce the overall risk. Investments in agricultural and forestry real estate are also interesting from an inheritance tax point of view or, for example, due to tax benefits on reinvestments after the sale of agricultural land.
While agricultural land is becoming increasingly scarce, prices for agricultural real estate as well as lease and land prices have been rising steadily in recent years. The further development and conversion of electricity production from renewable energies as well as the issue of environmental protection are also important reasons and factors that speak for land and forest investments. Because both the demand for plants, which play an elementary role in energy production, and the demand for wood, one of the most important raw materials, construction materials and materials, guarantee investors that land and forest real estate is a safe and stable form of investment.
Source: Colliers
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