A real estate investment is among the safest assets in times of financial uncertainty, as the Berlin real estate market proves right now: in these times, wise investors are turning to tangible assets that hedge against inflation: Andreas Zehnder, CEO of Verband der Privaten Sparkasse (the association of the private savings banks), reports survey results showing a gain of more than 5 percent in residential property as an investment objective, while the number of the respondents mentioning capital accumulation as an objective was down to 26%, compared to 50% the previous year (Berliner Morgenpost, Jan 17, 2009).
A secure and valuable investment in a tangible asset that hedges against inflation – that's what the private investor needs, and that's what the investor will find in Berlin real estate.
Berlin is a trendy city that's always had the scenes, but never followed the hype of London or New York. The city of Berlin is both old and young, as are the people that continue to be drawn to its economic and cultural opportunities; as the influx raises the demand for a limited supply of housing, the market will only continue to grow, according to Dirk Wohltorf of the Immobilienverband Deutschland (the German real estate association).
"Location, location, location!" – that's the key to a successful real estate investment, says Ludwig Maximilian Stoffel, chairman of STOFANEL Investment AG. As a location in which to acquire property today, Berlin's appeal runs deeper than its cultural leadership: it also boasts economic and social infrastructure with tremendous potential for development. Berlin is the real estate investment location of today… and tomorrow.
For more information, please click on the links below:
„Warum gerade jetzt in nachhaltige Immobilien investieren? Ein Statement der STOFANEL Investment AG.“
„Das Sparziel Immobilie hat deutlich gewonnen“. Berliner Morgenpost, 17.01.2009
„In Berlin gibt es noch keine Immobilienkrise“, Berliner Morgenpost, 18.01.2009
RBB Abenschau, 22.01.2009
A statement by Ludwig Maximilian Stoffel
The US bank crisis, crashing shares… – is any type of investment currently safe and will its value remain stable? If we look back to the past we can see that investment in real estate has always, compared to other forms of investment, for example shares, been the better choice which protected against an uncontrollable loss of value with an increasing inflation rate. So why hesitate when the benefits of real estate investment in Berlin are so obvious?
To begin with, the price with which you want to enter the property market is decisive. In London and the USA, for example, real estate was purchased for speculation purposes at horrendous entry prices. Hereby peak prices of up to 50,000 EUR per square meter were reached in London and, in American provincial towns, they were even higher than in Berlin. In the German capital the prices are only at the beginning of a development and the city has the most inexpensive real estate of all major European cities. The development of the raw materials market (e.g. steel) and in wages, will also automatically push the prices upwards.
Real estate, whether as a main or second home, as a holiday home or for old age, is always a lucrative form of capital investment. If you live in the property yourself you save, on the one hand, rent and, on the other hand, secure yourself living space – a valuable commodity which will not always be in endless supply.
Apart from the income from renting and leasing, there is another decisive factor which speaks in favour of real estate investment in Berlin: “Location, location, location” says Ludwig Maximilian Stoffel, chairman of STOFANEL Investment AG. This formula for success also, of course, applies to Berlin where property prices in the fashionable district of Prenzaluer Berg are currently being negotiated at high levels. The central destination, comparable to the Meatpacker District in New York City, has a strong appeal and offers enormous development and value increase potential. Data on economic growth, recently published by the working group “National Accounts of the Federal States”, confirms this trend as Berlin is, with a growth of 2.5 per cent of the gross domestic product in the first half year, clearly above the national average (1).
The property development firm STOFANEL Investment AG which is equally owned by Giovanna Stefanel-Stoffel and STOFFEL Holding GmbH/the main shareholder, Ludwig Maximilian Stoffel, develops national and international real estate projects in the top value sector. Orientated towards the needs of modern people and fulfilling the highest standards, STOFANEL develops real estate for today and tomorrow – exceptional individual projects in top major world cities designed as “urban villages” and “living resorts”, high quality lifestyle and leisure real estate at exclusive beach locations worldwide. The STOFANEL company strategy is fully orientated towards exceptional locations, unique aesthetic and a contemporary interpretation of quality of life.
STOFANEL is successfully active in the real estate investment sector with creativity, vision and experience. We are the right partner for you for consulting and support in long term capital investment.
(1) Source: Working group “National Accounts of the Federal States” VGR d L, Federal Statistical Offices, June 2008.
The first Stofanel Urban Village: www.marthashof.de
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