The forest goes up in 2025

A report from Handelsbanken predicts that the price of forest properties in Norrbotten, which went down last year, will go up again this year.

"The Norrbotten forest is standing firm in the face of the global market winds and we are seeing growing interest in buying forest property. Expected interest rate cuts from the Riksbank and continued high timber prices mean that prices in the county are generally expected to rise during the year," says Joakim Löfbom, forestry expert at Handelsbanken in Norrbotten.

The historical price trend for forest properties has been more stable compared to other property types during various economic crises. Despite geopolitical uncertainty, the outlook for forest property is bright.

Property prices have not kept up with the increase in commodity prices, which means that, according to Handelsbanken's new price survey, brokers expect prices to rise between 2-5 per cent in 2025, nationally. In five years' time, 6 out of 10 expect a price increase of at least 10 per cent. An expected lower interest rate level in the future and new income opportunities from the forest are contributing to a growing interest in acquiring forest properties.

Lennart Håkansson

editor@northswedenbusiness.com