Agrifrance 2018 Rural Report: Focus on The Forest Land Market in France
Approximately 120,000 hectares of forest land are bought and sold every year. The market is pretty active, with 17,500 transactions. For forests exceeding 100 hectares, the market is tight, and demand comfortably outstrips supply: only 130 transactions are closed every year.
The average price for forest land in France is €4,000 per hectare; this price edged up by more than 2% in 2016 and continued to rise in 2017. However, this average price masks disparities between the size of the forest, the quality of wood and the upside potential. It is worth noting that the presence of buildings pushes up the value of a forest. There is a wide gap between the lowest price per hectare (€670) and the highest (€12,040). The average price of a forest over 50 hectares is €6,400 per hectare; this figure rises to €9,100 per hectare in the French départements of Aisne, Ardennes and Marne.
A LARGER SURFACE AREA OF LAND FOR SALE
PRICES VARY ACCORDING TO SEGMENT
Although the average price has edged up only slightly, we observe that buyers have been paying a premium for top-quality forests (larger surface areas) for many years.
About Agrifrance
Agrifrance is the specialist rural property division of BNP Paribas Wealth Management, offering clients seeking the right investment and wealth management solutions the benefit of over 40 years of experience in the viticulture, farming, forestry and prestigious homes markets. With its network of recognised professionals, Agrifrance is also able to provide complementary services such as expertise in and management of rural properties.
Agrifrance is one of the asset diversification services proposed by BNP Paribas Wealth Management along-side Private Equity, Real Estate, Art Advisory …