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Report shows forestry investment market is booming
13/11/2009
The latest Forest Market Report from UPM Tilhill and Savills claims that investment in forestry and woodland has continued despite the recession.
The report, which is intended to help people looking to buy or sell commercial forest land, says that the average price of a plantation has increased by 82 per cent over the past five years, growing 102 per cent since 2002.
The report also found that the value of the UK forestry market in general almost doubled to £48.2 million, while sales of forest in England have doubled to account for 23 per cent of the market each year.
Crispin Golding, woodland investment advisor at UPM Tilhill, concluded, "forest values for 2008-09 have declined slightly from last year but hold their own in an otherwise turbulent year and maintain the long-term trend of increasing values since 2002.”
He added that the market has seen a boost in demand recently, with the growing popularity of bio fuels as alternative energy. He explained, “demand for timber has increased substantially in recent years. Investors not only appreciate the timber aspects of forests but also the wider credentials of forestry, for example as a source of sustainable bio energy, a green asset and a place to sequester carbon."
The report, which is intended to help people looking to buy or sell commercial forest land, says that the average price of a plantation has increased by 82 per cent over the past five years, growing 102 per cent since 2002.
The report also found that the value of the UK forestry market in general almost doubled to £48.2 million, while sales of forest in England have doubled to account for 23 per cent of the market each year.
Crispin Golding, woodland investment advisor at UPM Tilhill, concluded, "forest values for 2008-09 have declined slightly from last year but hold their own in an otherwise turbulent year and maintain the long-term trend of increasing values since 2002.”
He added that the market has seen a boost in demand recently, with the growing popularity of bio fuels as alternative energy. He explained, “demand for timber has increased substantially in recent years. Investors not only appreciate the timber aspects of forests but also the wider credentials of forestry, for example as a source of sustainable bio energy, a green asset and a place to sequester carbon."
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