Location Berlin

Berlin as business and scientific location

Berlin is in the middle of economic structural change. The shares of industry and construction have noticeably decreased in favour of a stronger emphasis on services. In order to be able to compete as a business location in the long run, Berlin must above all distinguish itself in the areas of the future. The preconditions to do so are good. As positive heritage of the years of the division, Berlin has an exceptional scientific, research, and development landscape because both the earlier governments of the former West Germany and East Germany concentrated efforts on the scientific potential of Berlin for political reasons. For example, Berlin has several renowned universities and numerous research institutes.

Demographic development in Berlin

Berlin suffered population losses after the reunification. This trend reversed itself in 2005. Since then, Berlin has recorded a net immigration from foreign countries and the rest of Germany, and consequently the population has increased. Still more interesting is the forecast for the number of households, which is expected to increase by 5.7 % from 2007 to 2020.5

Housing market Berlin

Berlin still offers low-priced rents in comparison with other cities – especially also with regard to purchasing power. According to Berlin's rental table 2009, the average net cold rents in the residential holdings are between EUR 4.57 per m2 in basic locations and EUR 5.34 per m2 in good locations. The margin of the net cold rents in Berlin is much greater; the average net cold rents are between EUR 1.85 per m2 minimum and EUR 11.54 per m2 maximum. The rents of new leases are between EUR 1.07 per m2 and EUR 11.77 per m2. Compared to other German metropolitan areas, Berlin thus has a high rent increase potential.6

5 BBU, Metropolis Comparison Germany 2009
6 BBU, Metropolis Comparison Germany 2009

History

My Annual Report

Relatively high rent increase potential in Berlin