Figure: Development of Suomen Sijoitusmetsät Market Price Index 2017–2024. The Market Price Index reflects the development of forest property market price levels adjusted for regional supply changes and timber volume variations. Comparison with Consumer Price Index development 1/2017–11/2024.
The forest property market grew in 2024: according to the Suomen Sijoitusmetsät Market Price Index, price levels rose 1.3% on the previous year. Transaction volumes have also increased, a sign of a well-functioning market.
Rising interest rates have affected forest property markets as well, but market price levels rose year-on-year in both 2023 and 2024. However, this does not represent continuous price growth: between summer 2023 and summer 2024, price levels fell 3.9%. Notably, the peak market price level of summer 2023 has not yet been exceeded. Regional price development has varied. In Northern Finland, prices rose 4.0%, while in Lapland they fell 2.5%. In Southern Finland, price levels rose 3.0%, but in Central Finland they fell 1.7% year-on-year.
In 2024, the number of forest property transactions began to grow again after two years of decline. Market volume grew significantly from summer onwards, and throughout the year 1,904 publicly marketed transactions of properties exceeding 10 hectares of forest land were completed. The transactions included 62,800 hectares of forest. In the north, transaction volumes increased significantly: in Lapland +33% and in Northern Finland +18% compared with 2023. Growth in the south was more moderate.
“The rise in price levels is partly explained by higher timber prices, which attract both private and professional buyers,” says Mika Venho, founder of Suomen Sijoitusmetsät. “In addition, lower interest rates make forest investment more attractive, especially to institutional investors. It remains to be seen how demand for Finnish special investment funds will recover, or whether redemption restrictions in other real estate funds will also dampen interest in forest funds.”
The growth in the volume of forest property transactions has been supported by abundant supply. In 2024, a record 2,388 properties came onto the market, covering 77,400 hectares of forest land. “The share of unsold properties has increased rather than decreased, as buyers have had the luxury of choice,” Venho reflects. “There have been no major players in the market willing to buy any property as long as the price was right.”
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