The paradox is intriguing. The French forest brings in little, often less than 2% per year, and yet it has never so attracted investors. In 2024, the market exceeded 2 billion euros for 21,860 transactions, and the average price per hectare rose further to 4,850 euros, the fourth consecutive year of increase, according to the SAFER and Société Forestière indicator. Legal entities, led by insurers and institutions, now take up almost half of the space.
What are these buyers looking for in such an unprofitable asset? A tangible investmentdecorrelated from financial marketsand above all a taxation among the sweetest of French heritage, both in possession and in transmission. To unravel the fantasy of the figures, Maître Caroline de Mascarel, associated notary in Paris (Racines Carrées Notaires), and specialized in forestry transactions and transfers, details what this green investment really allows, and for whom.
A meager return, a tax system that makes all the difference
On paper, the yield current of a forest disappoints, of the order of 1.5% to 2.5% per year once management costs are deducted. The reason is botanical. An oak takes two to three centuries to produce valuable wood, and we do not raze a plot to replenish our resources, even when we urgently need more. cash. Most of the gain therefore comes from capitalizationthe value of land and that of wood, sought after for construction, having increased significantly. “No one buys a forest for its yield. We buy a tangible asset, whose value is decorrelated from the financial markets to make it a virtuous capitalization instrument. »
The other motivation is tax. Owned directly or via a group, the forest benefits from a 75% exemption fromIFIunder article 976 of the General Tax Code. The good then only enters the base at 25% of its value. The same deduction of 75% applies to gift and inheritance taxes, this is the Monichon diet of article 793. Added to this is the Forest CHALLENGEa 25% tax credit on investment, capped like other niches.
This advantage has a counterpart. It assumes a management commitment sustainable over thirty years, validated by a certificate from the departmental territorial management. Beyond 20 hectares, the forest must follow a simple management plan, its roadmap, and clear cutting is prohibited. The legislator thus exchanges a boost tax against a promise, preserve the massif and its unit management rather than the dismember. “The administration gives you tax relief. In return, you undertake to sustainably manage your forest by following the requirements of the management plan. »
Live forest or GFI shares, who is it really suitable for?
There remains the question of entry. Direct purchasing targets assets already established. At 4,850 euros per hectare on average, and up to 40,000 or 50,000 euros for the most beautiful plots, we must aim for several dozen hectares for the operation to stand up. The owner then entrusts management to a forestry expertcollects the felling of wood, treated as fixed-price agricultural income, and often finds in it a pleasure, hunting or walking, as much as a calculation.
More accessible, the forestry investment group plays the role of forestry counterpart of the SCPI. Regulated by the AMF, it allows you to enter with a few hundred to a few thousand euros, by purchasing shares rather than a plot. The associate captures his share of revenuethere added value upon exit and the same tax advantages, provided you keep your shares for more than two years. Buying shares, and not land, also avoids proportional registration fees. France Valley and Société Forestière, a management company and subsidiary of Caisse des Dépôts, are among the managers certified by the AMF.
Investing is not without risk. Geography dictates. The massifs of the Centre, Burgundy or Centre-Val de Loire are expensive because the trees grow better there, when the south and the pines of Landes remain exposed to drought, storms and fires, as in 2022. Hence the interest in insurance against fire and storm, encouraged by a tax credit. Finally, there remains the least quantifiable part, the one which nourishes the attachment to this asset. “Transmitting a forest gives meaning and is often what brings a family together. » Ultimately, the forest addresses a already diversified saver, highly taxed and patientwho thinks in decades. For those looking for yield or the liquiditythe detour is not worth it.
Article for information purposes. It does not constitute investment advice or personalized tax advice. Investing carries a risk of capital loss and taxation depends on each individual’s situation.
