What makes Berlin so attractive for young people?

by Lisa Krueger-Franke
Slider, Travel

Whenever I tell people I am from Germany, I get this one reaction: “Oh really? I went to Berlin once, I loved it!” And ever so often, I meet people, who tell me their dream is to live in Berlin for a while. I have to admit, I am not mad about Berlin (living there I mean, I love visiting it), for me it’s just a bit too hipster and a bit too big but I obviously still wonder what does make Berlin so attractive to people all over the world and also all around Germany? I was thinking about what I like when I come visit and I was also talking to some people who actually moved to Berlin for a while. And here are some of the reasons I figured out.

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Investment in Berlin startups jumped by €1 billion this year, study shows

Venture capital investments in German startups hit a record level in the first half of 2017, with Berlin seeing a huge rise in funding for its startup scene, a new report shows.
Funding rounds for startups in Germany and the overall value of funding hit record levels in the first six months of this year, a report released this month by professional services firm EY reveals.

The total number of investments in German startups rose by 6 percent in comparison with the same period in 2016, to 264.

But the really explosive growth was seen in the overall size of investment. In the first half of this year, €2.163 billion of investors’ money went into startups, an increase of roughly €1.2 billion in comparison with the first half of 2016.

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EasyJet announces Berlin expansion and more flights

Airline in talks with other carriers to allow booking of more connecting flight.

EasyJet Europe, the sister airline set up to preserve easyJet after Brexit, has accelerated its growth by announcing rapid expansion in Berlin and new long-haul connections at Paris and Amsterdam.

The easyJet chief executive, Johan Lundgren, said: “There’s no doubt that the growth potential is in Europe. The UK will always be a critical market, but we have more to go at in the European mainland.”

EasyJet expects to fly 5.6 million passengers this year from Berlin, making it comfortably the biggest airline in the German capital, ahead of Lufthansa.

Lundgren added: “The German population have paid too much money to go on flights and that’s something we want to change.

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How Berlin Became the World’s Coolest Capital City


The German capital has grown from political pawn to global trendsetter. By Eliot Stein.

In 1987, Berlin was a divided city, cleaved in two by a concrete wall and treated like a political pawn in the Cold War freeze separating Western capitalism from Eastern communism.

While Americans watched as President Reagan stood by the Brandenburg Gate that June and demanded, “Mr. Gorbachev, tear down this wall!” stories of Berlin’s industrial techno temples, bohemian squats, and sweat-driven, all-night raves had already helped to put the city on the map for hedonists everywhere.

Thirty years later, the German capital has leveraged its legendary climate of cultural experimentation, DIY creativity, and free-wheeling spirit born from repression to become one of the most achingly hip places on the planet. Even as it’s catapulted to the center of European power and faced growing gentrification woes, Berlin remains a dynamic cultural trendsetter—a place whose live-and-let-live ethos has lured artists, activists, and visitors since Berliners swarmed the Wall with sledgehammers in 1989. The numbers don’t lie: In 2015, Berlin surpassed Rome to become Europe’s third-most-visited city, behind London and Paris. Last year, it welcomed a record 12.7 million visitors—more than 3.5 times its population, six times the number that visited West Berlin in 1987, and 4.5 times the number that visited the city in 1990 following reunification.

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The Case For Investing In Berlin’s Real Estate

Article written by Christian Schulte Eistrup, managing director of Optimum Asset Management, 2 January 2018, in Wealth Briefing

Berlin has changed considerably in recent years, yet it remains one of the most compelling market opportunities and appealing cities in Germany. The capital still offers excellent value; provided a proactive investment approach is taken.

We were an early entrant to the Berlin property market in 2006, when the city was not so popular. However, as evidenced by the city’s fourth successive appearance atop PricewaterhouseCooper’s Emerging Trends in Real Estate survey, Berlin has entered new territory.

The property market in Berlin is booming and offers great value to businesses. It is one of Europe’s most dynamic destinations for tech companies, large and small. The Sony Centre deal in November was one the largest European real estate deals in 2017.

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Investors pile into Berlin’s booming real estate

Article written by Emily Perryman in JLL real views

Overseas investors are pouring money into Berlin’s real estate sector, attracted by the German capital’s burgeoning economy and strong growth prospects.

After a record third quarter, which saw almost $3 billion of capital flowing into the city, Berlin has become the third most popular European destination for cross-border investment in 2017.

High-profile deals included the €1.1 billion acquisition of the Sony Center by Oxford Properties and Madison International Realty – one of the largest single-asset deals in the European property market this year.

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Berlin, meanwhile, saw GDP growth of 2.7 percent in 2016, making it the strongest growth state alongside Saxony. The city’s population is also expanding quickly and is expected to increase from 3.5 to 4 million by 2035, according to the Cologne Institute for Economic Research.

Rising prime rents, which have risen around 7 percent since the start 0f 2017 to €29 per square meter per month, have further fuelled investor interest.

Kadelbach says: “Germany is generally regarded as a safe haven and Berlin, as the capital, is the first choice because of its positive economic growth and demographics. Investors from all over the world, including the Americas, France, Norway and Asia, are attracted by its stable political environment and dynamic rental growth.”

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Is Germany the next property investment market for Hong Kong investors?

Article written by Ian Sigmund in the South China Morning Post

With Brexit uncertainty, the US being overbought and high interest rates in Canada and Australia, Germany could be a viable option among developed markets

As the Hong Kong market continues to heat up, Brexit uncertainty, and other global markets appearing priced in, investors in Hong Kong are increasingly looking to western Europe, specifically Germany.

Germany, despite boasting Europe’s largest economy and population, has not always been a natural destination for Hong Kong investors seeking to invest in property overseas. Perhaps due to an Anglo-centric bias from Hongkongers, and other jurisdictions closer to home, the German property market has hitherto been overlooked for some years.

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There is a marked housing supply-demand imbalance in major cities across Germany, which is particularly prevalent in Berlin and Frankfurt, and increasing with flourishing migrant populations and a birth rate that has risen to a 33-year high. This supply deficit is forecast to remain at levels of up to 40 per cent until 2030.

In Germany’s capital, 40 per cent of the population is under 35 years old and the city ranked third on the 2016 Youthful Cities Index. Berlin’s growing number of start-ups and new businesses is also fuelling population growth and a youth-centric culture, with 400,000 new residents expected by 2030.

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For investors looking to purchase micro-flats, the main draw is the very attractive rental yields that they offer. The small square-footage of the units allows owners to rent them out at costs that, compared to the average property or full-sized home, are relatively high per square foot, but that are also affordable to tenants who might not be able to afford to live in a larger property in a central location.

For example, Neukölln has the second highest rental growth in Berlin only behind Friedrichshain, its more developed neighbour, and its popularity keeps increasing as more shops, restaurants, bars and cafes keep opening week on week. As a result, the studio flats have high yields – up to 6.4 per cent compared to the 3 to 3.5 per cent average in Berlin.

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Berlin tops investment and development outlook for 2018

Article witten by Theo Andrew for Real Estate Investment Times

Berlin has topped the table of the best European cities for real estate investment and development in 2018, according to a forecast published by Urban Land Institute and PwC.

This is the fourth year in a row the German capital has been top of the ‘Emerging City’ rankings, with its success attributed to its business expansion with its technology sector at the forefront.

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Full article here

Brexit is making Germany even more juicy for real estate investors

Article written by Jill Petzinger for Quartz Media

It appears the real estate sector is no less susceptible to Brexit jitters than the financial one. As the months drag on with no clear UK plan on how to exit the European Union in sight, real-estate investors are eyeing up more predictable, lucrative places to put their money—and stable haven Germany is proving a major draw.

A survey released this week from auditing company PwC and the Urban Land Institute found that Germany’s capital Berlin tops the charts as the most attractive European city for investment and development potential. Berlin, Frankfurt, Munich, and Hamburg grabbed places in the top six cities in the Emerging Trends in Real Estate 2018 report, which interviewed 818 people from the real-estate industry. London’s 2018 “overall prospects” are ranked 27th.

Picture from Markus Schreiber

Real estate investment in Germany in the last year came to €68 billion ($79 billion) up from €54 billion last year, and outstripping the UK’s €66 billion worth of investment in the last year.

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Brexit impacts real estate as investors favour Germany over UK

As British researchers focusing on all sectors of the UK economy continue to attempt to confirm if Brexit will have a positive or negative impact on the market as a whole, new figures suggest investment-friendly sentiment is in the early stages of turning its back on Britain. Despite record investment in London, particularly in early 2017, German real estate opportunities have eclipsed the desirability of their UK counterparts for the first time – possibly in anticipation of a wider financial shift toward the mainland following Britain’s divorce from Brussels.

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Just one week later, however, a new study from online real estate investment platform BrickVest has suggested the opposite. The online financial marketplace allows clients to invest in institutional quality real estate globally. Leveraging data from its platform and a survey of 3,500 professional real estate investors from a number of the world’s largest economies, the company has concluded that the continuing saga of Brexit is having an impact on the attractiveness of UK property. According to the analysis of BrickVest’s latest Commercial Property Investment Barometer, 33% of investors named Germany as their preferred destination.

This is the first time that Germany has been chosen as the number one region to invest in ahead of the UK, which was selected by just over a quarter of respondents, at 27%.

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Full article here (consultancy.uk)