- With approximately 3.5 million residents and 892 km2 surface area the capital of Berlin is Germany’s largest municipality. After the Turn in 1989 and the reunification in the 1990’s there has been a renewed upswing for the city as a world metropolis. Today Berlin presents herself as modern, multicultural and trendsetting.
- The inflow to Berlin continues. This is in part due to the attractiveness of the city as residential location as well as educational and professional opportunities.
- Berlin has been named the UNESCO “City of Design” and enjoys a global reputation for being an exciting travel destination, which is why tourism is a significant economic factor. Hardly any other metropolis in Europe records a higher volume of tourists than Berlin. Tourists appreciate the ideal shopping conditions, the diverse nightlife, innovative architecture and numerous festivals.
- For the second time the German capital takes the first place under Europe’s five cities with the best income and development opportunities. This makes Berlin a worthwhile location for real estate projects and for all those who are interested in investing in real estate.
- In Berlin people from all over the world and different age groups try their luck. According to population forecasts this will not change in the coming decades.
- A population growth of 266.000 people is expected until 2030, which is an increase of approximately 7.5 %. At the same time the average age will slightly increase from 42.9 years to 44.4 years. The group of young adults will remain almost the same with 262,000 residents. An expected increase of 23 % is forecasted in the population group of ages 6 – 18.
- The largest population growth with 16 % will most probably be witnessed in Pankow. This is followed by Reinickendorf with 9.4 % and 9.3 % for Treptow-Köpenick and Lichtenberg. The population in Marzahn-Hellersdorf will also grow faster than the Berlin average.
- Berlin’s infrastructure is one of the most efficient in Europe. In addition to Berlin’s central train station with regional and long-distance trains, there is also a well-connected public transport network including busses, as well as U and S trains. Private travel by car also profits from an excellent road network, which extends to the scenic countryside. Additionally, there is access to the motorway connections to A10, A11, A13, A113 and A100 whereby capitals can be reached quickly.
- For long-haul destinations there are two airports, which handled approximately 29.53 million passengers in 2015. The three ports of Neukölln, Spandau and Westhafen are also of great significance for cargo handling.
Work / Economy
- Berlin is going through structural changes from a traditional industrial city to a futuristic technological and service centre. Favourable conditions are given, as the capital has a state-of-the-art communications network with a fibre optic cable network of more than 170,000 kilometres. In addition to that, one of Europe’s most advanced research and technology parks is located in Adlershof.
- A continuous reform of the administrative structures allows for faster handling of all administrative processes, which also encourages Berlin as an investment location.
- Multimedia, IT and communications technology, environmental technology and media economics are Berlin’s main industries. Furthermore, medical technology, traffic engineering and bioengineering are becoming increasingly significant. Highly skilled workers benefit from these expanding and future-oriented fields of work.
- The goal is to create a technology transfer between economy and science, which leads to crucial competitive advantages.
Education / Culture
- Since the 18th century Berlin has been a significant location for knowledge and culture, which can be seen in the urban developments and cultural programs. There are dozens of theatres and museums that have an international reputation. It’s a mix of traditional and experimental establishments, which allow for Berlin to give new impulses to the international culture and art scene.
- Berlin shows a great concentration of science and research institutions. There are a total of 31 universities and colleges, which keep close contact to the economy. In the winter semester of 2015/2016 there were 175,651 students enrolled.
- Since 2012, the capital is Germany’s most research-oriented region. It comes as no surprise that approximately 13 % of all German patent applications come from Berlin.
Leisure / Sports
- Numerous parks and closely situated excursion destinations like the Spreewald are available to Berliners as a recreational destination. At the same time the capital is a green metropolis with 18 % forest area within the city.
- The Wannsee and beach with an area of 273 hectares is very popular. Residents of Berlin are enthusiastic about sports. More than over 100 local sports teams from different disciplines are fighting for victory in the German Bundesliga. Hertha BSC is one of the most famous football teams. Alba Berlin is quite popular in basketball and die Eisbären are known for their performance in ice hockey.
BEST RESIDENTIAL LOCATIONS
- The most sought after residential locations are in the city centre in Berlin-Mitte. There is also a high demand of property in Friedrichshain and Kreuzberg.
- Wilmersdorf in western Berlin is also highly sought after. Prenzlauer Berg in the eastern part of the capital has been going through a successful gentrification process for years, which has led to an high increase in rent. Grunewald and Dahlem in south-west Berlin are known for their luxury real estate and villas.
Owner-occupied flats in Berlin – Sales prices 2015 by districts Offer prices for flats in Berlin from 2011 to 2015 classified by districts (in Euro / m²)
|Q1 2011||Q3 2012||Q1 2013||Q1 2014||Q3 2014||Q3 2015|
Quelle: LBS (Norddeutsche Landesbausparkasse); empirica; immodaten.net (Angaben für 2011)
Source: LBS (Norddeutsche Landesbausparkasse); empirica; immodaten.net (Data for 2011)
Vacancy rate of flats in Berlin until 2014
- With an above-average population growth, a flourishing research landscape and future oriented business sectors, there are promising predictions for a continuous positive development of Berlin.
- A wide range of cultural and entertainment opportunities, parks and numerous universities contribute to the capital’s attractiveness as a residential and vocational location.
- Berlin is Germany’s most significant investment location for residential property. In 2015 the volume of transactions totalled approximately € 5 billion or rather 51,000 flats. In comparison to the previous year this signifies an increase of 60%. Berlin continues to stay attractive for both small and big investors.
- According to experts 15,000 to 20,000 flats will be built annually until 2020 in order to meet the extreme demand in real estate.
- A drop in rent or in sales prices is not expected. In the capital’s top residential locations, a further increase in the price level is expected.
Without a doubt, Berlin is one of the top locations when it comes to real estate investments. The constant demand in new residential space, above average population growth and the potential of the capital as an economic hub contribute to Berlin’s attractiveness short and long term for investors.