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Green Money - Forests as an Investment

Fabian ChristNovember 16, 2011

For months now, the stock markets have been unpredictable, and several countries are deep in economic crisis. People are worried about their savings, and many want to find a safer place to put their money. Some have started buying forest land - like the clients of the Berlin auction house Karhausen. It’s noticed an increased demand for forest property.

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Ever since the auction house started selling forests in 2007, it’s sold every lot it put on the block, independent of developments in the price of lumber. MADE IN GERMANY went to this year’s autumn auction, where we spoke to potential buyers. We went with one new owner to visit his woods. People like him are by no means unusual at auctions - price developments on the market reflect how much forest property is in demand. Around Berlin, prices rose by 136 percent between 2006 and 2010. Analysts say they’re not surprised - forests are an investment that can even bring a return. Report by Tabea Mergenthaler.