The rally is over, breaking trend as Svefa summarizes the price development for forest properties

New statistics from Svefa, Sweden's leading independent real estate advisor, show that the price trend for forest properties has stopped. Svefa has compiled the development for Sweden's 21 counties regarding the first six months of the year and can state that the rally is over. There are also reversals in the table of percentage price development with Uppsala at the top and the unexpected rocket Gotland climbing 19 places.

In the end, reality caught up with the Swedish forest property market and the trend break is a fact. Price development has stalled and is now negative after inflation. However, Gotland is an unexpected exclamation mark. From having stagnant prices in recent years and being last in the table, the county climbs 19 places to second place and shows a nominal price growth of 7.0 percent Only Uppsala has a better growth, 8.9 percent. The two counties distance by a good margin the third-placed Södermanland (3.7 percent).

During the first half of 2023, Swedish forest property prices have risen on average by a meager 1.1 percent. Looking at the price in SEK, Skåne is the most expensive at 1,000 kronor/m3. However, the peak has been passed in the high-price counties and there is a more stable development in the more traditional forestry counties.

” There is a clear trend break in the market and we can state that the rally is over for this time. However, it is nice to see that the Gotland forestry market which, after several lean years, now is hot. As always with forest properties, it is important to look at your local market as it often differs and there are several different sub-markets within the counties. The light in the tunnel is the fact that the timber market is still doing well. This could mean that forest property prices continue to develop positively during the autumn” says Paul Nord, Head of Svefa Forestry.