Determinants of the price of forest properties in Sweden : A study about factors affecting forest property prices

Abstract: During the last decade we have seen an increase in prices of forest properties in Sweden. The study’s purpose is to identify the factors that are the driving force behind the price increase of forest properties in Sweden during the years of 2018-2021. The data used comes from a Swedish real estate agency named Areal. The study is made with an econometric model that is called multiple linear regression. The results indicate that the factors that influence the price of a forest property is the geographical position, timber storage, average growth and whether there is a residential building on the property or not. The conclusion is that the geographical position of a forest property has the highest economic significance.