Interesting

Investing in forestland in the Baltic states so far has proven to be a very good business. The prices rise primarily in Estonia and Latvia has been very fast from a low base.

Prices of the forestland in Lithuania has however not reached the same level as in Estonia and Latvia, as the majority of investors have been previously been concentrated to those countries. This was partly due to historical links between Sweden, Estonia and Latvia, a better-developed sawmilling industry and better links between Sweden and the countries.

Although the prices of forest land are significantly lower in Lithuania than in the rest of the Baltic countries but timber prices are comparable amongst the countries.

Many of those who have previously invested in forest land as example in Estonia has started recently looking for and buying forestland in Ltihuania.

Generally, this means that land prices has increased quite rapidly at the moment, but are still lower than in the rest of the Baltic states.

It is possible to get European Union support for forest development. This support program is for:

  • Investment in technology of forestry (max 50 000 Eur)
  • Investments improving the resistance of forest ecosystems and environmental value (max 50 000 Eur, 197 Eur/ha for young forest thinning)
  • Afforestation
  • Payment for the damage caused to forests (max 200 000 Eur)

More information is in “National Paying Agency” homepage: https://www.nma.lt/index.php?lang=2

Lithuanian people population is about 3.3 million inhabitants but the size of the country is approximately the same as Latvia or Estonia.

The largest towns are the capital Vilnius, Kaunas and Klaipeda.

Lithuania is the member of Euro area since January, 2015.

Approximately one third of the land area in Lithuania made up of forest land (2,173,000 ha).

The dominating tree species are pine (35%), birch (22%) and spruce (21%).

Our publications on forest investment abroad:

https://www.investitin.com/lithuanian-forestry-investments/

https://blog.forest2market.com/lithuanian-forest-land-an-investment-opportunity-poised-for-growth

 

EXAMPLE OF FOREST PROPERTIES

Area: 5.5 ha of forest land

Timber volume 1 000 m³ forest consinst mostly of 30-year-old spruce.

By thinning cutings 200 m³ can be cut, which can provide about 3 900 Euro income.

Asking property price are: 7,700 euros (7.7 Euro / m³)

 

* Prices in the year of 2016