For the third time, Berenberg-Bank and the renowned HWWI Hamburg Institute of International Economics surveyed Germany’s 30 largest cities in regard to their forward-looking viability. In their first ranking in 2008, Berlin still scored 24th place out of 30. By 2010, Berlin had ascended to eighth place, and in the latest survey, the nation’s capital ranks fifth.
This means that while it may yet be lagging behind Frankfurt, Munich, Bonn and Düsseldorf, Berlin is now ahead of cities like Cologne, Stuttgart, and Hamburg. According to the survey’s authors, Berlin’s lot has been improved by the brisk dynamic in the city’s demographic and job growth (increasing by nine percent between 2005 and 2010). “The economic motor of Germany’s capital is humming, as locational advantages such as education and innovativeness, international integration and accessibility have improved according to the ranking. Looking forward, there is every reason to expect the German capital to maintain its position among the leading five cities,” said the Hamburg Institute of International Economics.
It is not the only ranking in which Berlin figures prominently. More remarkable is actually the survey “Emerging Trends in Real Estate” that is published annually by PWC and the Urban Land Institute, and
which resonates strongly within the real estate industry. The most recent edition of the survey shows Berlin in second place, trailing Munich but outpacing London, Istanbul, Hamburg, Paris, Zurich, and Moscow. “The buzz around Berlin,” reads the survey, “is rooted in its hip, young scene. Not only is it the city of choice for tech entrepreneurs, fashion designers, and artists, but also Twitter will be opening an office in Berlin. Dubbed ‘Silicon Allee’, Berlin’s technology, media and creative industries total almost 37,000 companies with an annual turnover of Euro 26 billion (…) The real estate market is responding to this growth, especially in residential – the most popular sector with survey respondents.”
Meanwhile, project developers have become aware to the appeal of Berlin as a real estate destination. BulwienGesa puts Berlin squarely in the lead in its city ranking: “Berlin is the largest construction site in Germany.” The survey analysed the project volumes of real estate investments in Germany’s “Big Seven” cities, with Berlin emerging on top with a monetary volume of 20 billion euros. Next in line were Hamburg and Munich.
And not just residential investors have discovered the attractiveness of Germany’s capital. In the global ranking of “top targets for new retail entrants” by international real estate consultancy CB Richard Ellis, Berlin ranks third, far ahead of cities like Paris, Tokyo, London, New York or Frankfurt.
In short, quite a number of city and location rankings and ratings vindicate an investor’s decision to commit him- or herself in Berlin.
