In Sweden average forestland prices have more than doubled over the last 10-15 years. In 1999 average forestland prices were €2,800/ha, and now the prices have risen to above €6,000/ha on average. Finland has also seen burgeoning forestland prices.
In the Baltics, forestland values have also seen dramatic changes. In 2000, average prices were approx. €5-800/ha and reached just below €2,000/ha in 2007, went down during financial crisis but quickly regained strength and we now see prices around €2,500/ha. Increases in land values have contributed to rates of return of up to 22 % (land values vary across the Baltic region).
The difference in land prices between Scandinavia and the Baltics cannot be explained by the standing timber value alone and many anticipate an adjustment of land values between the regions. There is a general consensus that the Scandinavian forestland markets are maturing, while the Baltics remain immature.