BERLIN

Berlin is the most populous city in the EU, with 3.7 million residents as of 2023, and is expected to exceed 4.1 million by 2040. This growth will put it 2 million residents ahead of Germany's second-largest city, Hamburg. With 85% of Berliners living in rental properties, the growing population has intensified pressure on the already strained housing stock, pushing rents higher. Those hoping to invest in Berlin have been eager to capitalise on this robust rental market.

Despite the increasing rents, Berlin remains a more affordable option for renters compared to other major German cities such as Munich, Frankfurt, and Stuttgart, as noted by Savills.

Berlin attracts national and international trained workers and has an employment population of more than 2 million people. In Berlin, the service sector is responsible for around 86% of economic performance. Companies and start-ups can find excellent conditions for achieving economic success here. Capital is particularly attractive to entrepreneurs in the creative and technology sectors. Berlin, as the centre of Germany’s start-up scene, has around 30% of the nation's start-ups, and has given them USD7.3 billion in venture capital funding in 2023. The city’s share of total VC financing in Germany over the last years has been between 50 and 70%. Owing to the high quality of these new job opportunities, the middle-income band increased by 71% between 2000 and 2022.

It is expected that the Professional, Scientific & Technical Activities sector will be Berlin's most productive sector with a GVA totalling EUR19.5 billion by 2035, an increase of 124% since 2000. This sector has also seen the number of jobs rise from 110,000 to 211,500 in the last 20 years and is forecast to hit 249,000 by 2035, an increase of 125% over the entire period.

Berlin proudly showcases a premier academic landscape on a national scale, with its universities holding strong positions in the Times' global rankings. Humboldt Universität, Charité, and Freie Universität Berlin rank among Germany's top 10, while Technische Universität Berlin occupies the 16th spot. As Berlin's oldest and most esteemed institution, Humboldt University boasts a rich academic heritage, including renowned past professor Albert Einstein. Collectively, these four universities are home to over 100,000 students and 20,000 educators and researchers. In total, Berlin's higher education institutions engage more than 250,000 individuals in work, research, and study.

Moreover, Berlin's student population reflects the city's diversity, consistently ranking as the top destination for international students, who comprise approximately 20% of the total student body. Berlin also serves as a hub for technological innovation geared toward sustainable futures, positioning itself as a leader in science and research. Over 300 research groups in the city are actively engaged in projects aimed at creating a sustainable urban environment, exploring areas such as renewable energy, energy networks and storage, turbomachinery, and energy efficiency. Clean energy technology companies in Berlin employ around 60,500 individuals, generating an annual turnover of EUR 29 billion.

The economic and population growth in Berlin is projected to outpace supply until at least 2040, exacerbating the housing shortage and causing vacancy rates to plummet below 1%. As of 2023, the estimated housing deficit in Berlin amounted to approximately 100,000 units. Due to the structural nature of this undersupply, the shortfall is expected to persist beyond 2040. Consequently, average prices for apartments in Berlin witnessed a y-o-y growth of 6.17% in 2022.

Berlin stands out as one of Germany's most sustainable cities, consistently surpassing national objectives regarding renewable energy consumption. By 2025, the city aims to derive 100% of its energy needs from renewable sources, far exceeding the national target of 40%. Berlin's climate protection goals and corresponding strategies are embedded in the Berlin Energy Turnaround Act, legally enshrining the city's ambition to achieve climate neutrality by 2050.

With a ratio of 350 cars per 1,000 residents, Berlin boasts the lowest reliance on automobiles for regular transportation among German cities. Residents can conveniently navigate the city via underground and overground trains, trams, buses, and 620 km of dedicated cycle paths.

Berlin's climate protection strategy also emphasises e-mobility and the successful integration of various energy sectors. The city currently hosts the highest number of electric vehicle charging stations in Germany and plans to establish thousands more in the coming years. Over 270 local energy generation projects, more than 1,500 communal heating/power stations or micro power plants, and approximately 6,000 photovoltaic power plants underscore Berlin's pioneering role in this domain.