Why invest into land?
Forest and agricultural properties traditionally offer inflation-resistant assets, producing green energy today.
Safe and effective
Investing capital in forest and agricultural land is a relatively safe and effective way to preserve and increase assets. Renting agricultural land provides a steady stream of income. It ensures a reliable cash flow, making it a stable investment option.
Low costs
In the Baltic states, forest and agricultural land prices are lower than in the rest of Europe and easy to purchase. Growing demand for wood products and decreasing resources in Northern Europe are causing shortages and likely driving up wood prices. Forests in the Baltic region are diverse and mainly regenerate naturally, leading to lower reforestation costs compared to the rest of Europe.
A Sustainable Choice for Carbon Sequestration
Investing in forests is an ecologically sustainable choice that supports carbon sequestration, helps mitigate climate change, and is crucial for biodiversity conservation.
Highly developed wood industry and future potential
The forest, agricultural, and food industries are highly developed in Estonia, ensuring a robust market for their products. The abundance of ports and their proximity prevent the emergence of a monopoly in the wood products market and ensure access to the global markets.
Estonia currently does not have the capability to chemically treat wood. Several projects have been initiated and are under development, aiming to reduce the export of low-quality round timber, which would enable higher prices to be paid to the landowner for the timber.
Productivity could increase in agriculture
EU subsidies in Estonia have been lower than the European average, and the perspective is that they should be equalized. Due to Estonia’s geographical position, productivity is expected to increase due to global warming.
Education
The Estonian state is very committed to forestry education. Forestry and agricultural activities offer an opportunity to boost the local economy, which has a significant impact on the local community.
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Investing in forest and agricultural land offers stability, potential for appreciation, income generation, and environmental benefits.
Source: Estonian Land Borad, transactions database.
