Reasons to invest in Baltic forestland

HD Forest has a track record of more than 20 years in the Baltics and has become the largest independent forest manager covering all three Baltic countries.

There are numerous good reasons to invest in Baltic forestland. On this page we have summarized some of the best reasons. 

Attractive returns of 5 - 6 % (expected)

  • Value is primarily based on mature timber and capital appreciation in young stands
  • Return is stable and predictable based on biological growth
  • High demand for wood products locally and globally
  • NOT dependent on subsidies, hunting, financial gearing or amenity values
  • Based on more than 20 years of experience
  • Net of all costs

Low risk

  • Operational risk: flexibility in timing of harvest, trees keep growing regardless of financial situation, HD Forest track record
  • Biological risk: small properties spread geographically, resilience of semi-natural mixed forests
  • Political risk: safe place to do business, high transparency rating, modern legislation, EUR, EU and NATO

Long term perspective

  • Green sustainable resource, PEFC/ FSC certified and modern balanced forestry legislation
  • Suitable for pension savings and generational/succession planning
  • Upside on land prices and further industry development

HD Forest has been offering seamless forest management service in Estonia, Latvia and Lithuania since 1998. As such, we are the oldest and largest independent forest manager covering all three Baltic countries. Investments are organized in a simple and transparent set-up where you as investor own your own forest and have full decision power over your investment. 

Baltic forestry investments offer attractive return due to

  • Stable and predictable growth
  • Capital appreciation from undervalued younger crops
  • Quality timber
  • Strong demand for timber from local industry
  • Low operational risks in forestry
  • Modern infrastructure

Stable countries in healthy growth

We operate in Estonia, Latvia and Lithuania, which are all ideal countries for safe, sustainable and profitable forest investments. As part of formulating your investment strategy, we recommend the country most suitable for your investment based on a number of factors, including your short-term and long-term goals, local conditions and any preference you might have. â€‹

Estonia (45,230 square kilometres)

Estonia (45,230 square kilometres)

The Estonian forest area covers more than 2 million hectares, which is half of the total area of land. Private forest ownership constitutes 43%. Forest growth constitutes approx. 16 million cubic metres/year. Annual harvest is around 11 million cubic metres.

Key facts about Estonia: EU and NATO member, EUR currency, GDP/capita (2018): 23,250 USD. Export of forest products accounts for 13% of the total exports. The forest sector contributes 6% of the total GDP.

Latvia (65,000 square kilometres)

Latvia (65,000 square kilometres)

Forest covers 52% of the total land area, which accounts for 3.4 million hectares. Private forest ownership constitutes 45%. Forest growth constitutes approx. 17 million cubic metres/year. Annual harvest is around 12 million cubic metres.

Key facts about Latvia: EU and NATO member, EUR currency, GDP/capita (2018): 17,860 USD. Export of forest products accounts for 20% of the total exports. The forest sector contributes 5% of the total GDP.

Lithuania (65,300 square kilometres)

Lithuania (65,300 square kilometres)

Forest covers 1/3 of the total land area, which accounts for more than 2.1 million hectares. About 1/3 of the forests are privately owned. Forest growth constitutes approx. 11 million cubic metres/year. Annual harvest is around 9 million cubic metres.

Key facts about Lithuania: EU and NATO member, EUR currency, GDP/capita (2018): 19,150 USD. Export of forest products accounts for 13% of the total exports. The forest sector contributes 3.8% of the total GDP.

HD Forest advises on forest management, provides promotion and brokerage services relating to the sale of forest areas and advises on acquisition of forest areas. Annual returns may vary, and an investment in forest areas could lead to a loss of all or part of the capital invested. HD Forest is not liable for any tax consequences associated with investments in forest areas, and investors are therefore advised to seek professional advice from a lawyer and/or an accountant.   

Tax differences
There are some tax and legal differences between the Baltic States. Contact us to know more.

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