Berlin was always subject to constant change – not only since the fall of the Berlin Wall. Strong economic development helped Berlin, compared to other metropolises, to evolve into one of the most interesting and promising cities in Europe. This is due to several factors: a prime location in the centre of Europe, an above average employment rate as well as the dynamic development in the spheres of science, research, technology, media and telecommunication. A special economic revival could be achieved by young start-up companies that are increasingly settling in Berlin and creating numerous jobs. They move mostly in creative areas like the professional fashion industry and could only earn their career kick-start in the ‘international’ place of business that is Berlin. Last but not least Berlin wins more and more because of a rapid growth of tourism. Interestingly, the tourism moves away from the classical model and concentrates more on Berlin’s people as well as cultural meetings and street festivals.
Low vacancy rate and great demand – an ideal combination
Berlin constantly grew in the past years due to the increased demand for office space and, compared to other European cities, has evolved to the top location. These clearly include top quality locations like Berlin-Mitte, Potsdamer Platz, Alexanderplatz, City West and Europacity. These central locations feature high rent levels with outstanding infrastructure, historic backgrounds and atmosphere. No wonder that these are the center of attention for tenants and investors. The low vacancy rate and high demand is equally appreciated by tenants and investors and is therefore preferred compared to other locations. The growing interest in office properties in Berlin raised the purchase price level distinctly. The planned new high-rise office and apartment buildings, as well as the upgraded high-rise buildings, support this trend and it is desirable to keep them close to the city center. The good transport connection, the image of the ‘young’ and newly awakened Berlin and the many cultural and political institutions and establishments in the inner city are helping to attract many established companies and scientific institutions as well as young entrepreneurs and small business enterprises.
Berlin proves itself as the capital city of business founders
Berlin, with its 3.5 million residents in the central city, belongs to the ten biggest metropolitan areas of Europe. Although it is not comparable with metropolitan regions of London or Paris, the economic basis has constantly improved in relation to the population growth. This led to a potent income and purchasing power impulse. In the last five years, the gross domestic product (GDP) of Berlin is above the average of the Federal States of Germany. This explains an employment growth of approximately 170 000 additional jobs in the period between 2005 until 2014. Also in the years ahead Berlin will grow stronger than the Federal German average. If one is talking about a business founder capital city then one is talking about Berlin. The federal capital is known and recognised far and wide as the creative center of Europe. Creative artists, the IT-industry, fashion designers and entrepreneurs from all over the world are establishing themselves in Berlin, founding companies and entering into collaborations with universities and research and science institutions. Many local business models were sponsored with the venture capital model that alone in 2014 made a big influence with 300 to 400 million Euro. This exceeds the German average by far and is also above the average compared to other European cities.
Berlin – one the most important investment locations of Germany
Not at least Berlin will be more and more vitalized due to the immigration of professionals from home and abroad, generated by the new creation of jobs. The international networking and the innovative strength should be enhanced. The basis is the fusion of research, economy, administration and the transfer of technology that will occur as a natural consequence within the production and work processes.
Berlin is facing a problem of creating living spaces and office spaces. Berlin, with more than 18.7 million square meters of rental area for business premises, is by far the biggest office market location in Germany. Even when compared internationally, Berlin is already the quality location regarding rentable spaces. It is only understandable that the capital city has developed during the last years to become one of the most important investment locations in Germany. Not at least because this attraction is expressed in a very high demand for business properties.
The positive economic growth in relation to the founders’ scene will prospectively ensure a further increase of jobs. In 2019, presumably more than 750 000 office employees will be working and living in Berlin and with this, a constant demand for office space will be the result.
