During 2025, forest property prices have increased significantly. According to the Suomen Sijoitusmetsät Market Price Index, prices rose by 6.2% nationwide during the first nine months of the year (January–September). Regionally, the strongest increase was recorded in Northern Finland, where prices rose by more than 9%. In Southern Finland, the increase was more moderate at just under 4%. During the first nine months of the year, publicly listed forest properties sold for an average of €4,900 per hectare and €48 per cubic metre, higher than at any point during our monitoring period, which began in 2017.
A key factor behind the increase has been the rise in stumpage prices, although they peaked in June and have since declined. However, the increase in timber prices has not been fully reflected in forest property prices: relative to unadjusted sum-of-the-parts values and asking prices, average transaction prices have actually declined. Nationwide, transaction prices during the first nine months of the year were 11% below unadjusted sum-of-the-parts values.
“Forest property pricing has therefore remained reasonable in relation to timber prices, as future harvesting income cannot be based on today’s price levels,” says Eero Viitanen, Head of Forest Information at Suomen Sijoitusmetsät. “Forest properties are generally valued using average stumpage prices from the previous three to five years. It has been reasonable to pay more for properties with substantial immediate harvesting potential, as there has been a strong likelihood of receiving attractive bids for standing timber.”
The dynamics of the forest property market are also changing. Large professional forest investors have not been the main drivers of the market, nor has private ownership become particularly dominant. Instead, the share of smaller companies, investment firms and jointly owned forests is increasing. These groups now account for 20% of the market, compared with half that share just three years ago.
“Now that the timber market has slowed down, as is typical in autumn, upward pressure on forest property prices may ease,” says Mika Venho, founder and CEO of Suomen Sijoitusmetsät. “Combined with the negative news flow from the forest industry and declining timber prices used in valuations, we can expect this year’s increase in forest property prices to remain around its current level of six per cent.”
Further information:
- Mika Venho, Founder and CEO, Suomen Sijoitusmetsät
- Eero Viitanen, Head of Forest Information, Suomen Sijoitusmetsät
Suomen Sijoitusmetsät monitors the forest property market comprehensively and regularly publishes analyses of price levels, transaction volumes and the structure of market supply. Regional statistics are also available upon request.
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