Berlin: Ten reasons why the German capital should be on investors’ radar

1. Fourth largest economic power in the world

Berlin is characterised by internationality, low rents, an excellent infrastructure and diverse cultural offerings. Post 2009 Berlin’s annual economic growth has been well above the German average, particularly over the past four years; 3.0% versus 1.9%. From an economic geographical point of view, the city benefits from being at the centre of the Berlin-Brandenburg metropolitan region, which comprises approximately six million people.

2. Start ups

Along with Silicon Valley, Los Angeles, New York and London, Berlin was amongst the top five start-up locations globally in 2018. In terms of start – up investment volume, Berlin ranks second after London in a European comparison. Many German DAX 30 companies with global operations, such as Siemens Daimler, Bayer and BMW, have chosen Berlin as a corporate location.

3. Lifestyle

The city of unlimited possibilities. The rich cultural event offering, the leading choice of top quality restaurants, countless parks and the excellent public transportation network all contribute to the high quality of life in Berlin. It has several city centers which bringing liveliness to the city and comprises premium air quality, clean, drinkable tap water and a temperate climate contributes to a pleasant and enjoyable lifestyle.

4. Education

Access to education is hardly as affordable in any other big city as it is in the German capital. The tuition fees of public and private institutions are far below those of other international cities. Furthermore, the quality of Berlin’s daycare centers, schools, universities and technical colleges have excellent worldwide reputations. Over 50% of international graduates remain in the German capital after graduation because they are granted an 18-month residence permit.


Image: Humboldt University

5. Healthcare

Germany has one of the best healthcare systems in the world. Berlin specifically is acknowledged worldwide for its cutting-edge medical sector – thanks to Europe’s largest university hospital, Charité and a dense, comprehensive network of high-ranking research facilities and institutes.

6.Tourism

Tourism demand for Berlin remains consistently strong and is strengthening further. In 2017, Berlin hosted over 31 million overnight stays, the third most visited European destination, according to the Berlin-Brandenburg Statistics Office. Holiday rentals are currently limited to 90 nights a year in the city.


Image: Berlin Kreuzberg Oberbaumbrücke

7. Strong market outlook

Berlin is unlikely to see overall demand weaken in the near future. Of all the German cities with a population above one million, as of now Berlin has the lowest house prices and a very low residential ownership rate of approximately 15%, the market has a lot of potential, particularly from an investor perspective. There are of course European headwinds in the form of Brexit, and a tighter monetary policy, however Berlin’s current economic forecast, low unemployment rate, excellent schools and strong wealth creation prospects act as firm foundations for the future.

8. Little foreign buyer restrictions

When purchasing property in Berlin, both residents and non-residents are treated identically in terms of taxation and purchase costs. To date many international buyers have been drawn to the market due to its high quality of life and relatively low cost of living. In addition there is no capital gains tax payable after 10 years of ownership.


Image: Berlin City

9. One of PWC’s leading cities for investment

Berlin ranked number two in PWC’s Emerging Trends in Europe 2019 Report, it came second as the most desirable City to invest in Europe.

10. Green space

This lively metropolis also has a quiet side and is the greenest city in Germany creating a relaxed and healthy environment for living and working. With over 5,500 hectares of green space there are plenty of places to discover hidden trails especially in the Tiergarten, Charlottenburg Palace Park or the Botanical Gardens.


Image: Victory Column Tiergarten Ariel View

Source: Knight Frank Research and Ziegert Research