Commercial forests recorded a 5% growth in value per hectare in the year to September, according to the latest UPM Tilhill/Savills forest market report.
The increase has helped lift prices 138% since 2002, which equates to a 17% average annual growth over the period.
But the report said forest values over the year did not fully reflect the rise in timber prices – which increased 47% in the year to September – underlying the forest property market’s cautious reaction to short-term moves in timber prices.
More than half of total sales in Scotland were accounted for by the Forestry Commission’s disposal programme, which continues to bring commercial forest properties of considerable size to the market.
“This report clearly shows the continued strength of the forest market which is very encouraging,” said George McRobbie, UPM Tilhill’s forestry operations director.
“Values are increasing and we see lots of optimism about the future of both the property market and timber prices. Forestry continues to prove its worth in uncertain times.”
