Berlin
1
Berlin
Berlin is located in the centre of Brandenburg in a wide glacial valley,
through which the River Spree flows. The city is criss-crossed by canals,
forming an extensive network of waterways.
The large lakes in Berlin are a remnant from the Ice Ages and along with the
forests in the area are ideal places for rest and relaxation.
Berlin Today has many faces and is once again growing as a whole into a
fascinating European Metropolis and excellent place to live comfortably and
enjoy the life.
You will have a choice of property ranging from luxury city apartments to
comfortable suburban houses to waterside villas. Unique locations and
reasonable rental and purchasing prices all characterize the real estate
market in the region.
Berlin is an absolutely safe city without riotousness.
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Berlin City Facts
 Area: 891.69km2
 Berlin Population: 3,388,000 (2005 January)
 Germany Population: 82,688,000 (2005 January)
 Population density: 3797/km2
 Elevation: 34 m above sea level
 Currency: Euro (€, EUR)
 Time Zone: GMT plus one hour
 Language: German (The most spoken languages after german are:
turkish, english, russian, poland, and spanish)
 Berlin has more than 440.000 foreigner inhabitants from more than
180 nations
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Population in details
By age groups in years
Families – ( 816.800)
 0 to 5: 5%
Families with children under 18 years: 41,6%,
 6 to 17: 10,4%
 Of which married couples: 54%
 18 to 44: 41,4%
(With 1 child: 51,3%, 2 or more children: 48,7%)
 45 to 64: 26,6%
 Single person parent: 46%
 65 and over: 16,6%
(with 1 child: 71,1%, 2 or more children: 28,9%)
By marital status
Pupils – (441,000)
 Single:47,7%
Of which
 Married: 35,9%
 Primary (years 1-6): 36,8%
 Widowed: 6,4%
 Intermediate (years 7-10): 30,0%
 Divorced: 10,0%
 Upper (years 11-13): 10%
 In vocational schools: 22,8%
Students in Universities
Source: Statistisches Landesamt Berlin, 2005
Of which 14,7% foreign
– (139,500)
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Germany

Berlin is the largest city in Germany

Berlin is the political centre of decision-making
in Germany. This is the seat of government,
parliament, regional representation agencies and
top associations of trade and industry.

Geographically, the city-state lies in the Land
Brandenburg.

38 kilometres long and 45 kilometres wide, covers
an area of 890km2

The City lies between oceanic and continental
climate

Summer: average 22-23 C, winter: - degrees

Most of the travellers who enter the country do not
need visa
5
History
Berlin with its less than 800 years is considered a rather young city.
12th century: Berlin as a merchant town
1307: Cölln and Berlin merged
1486: The Hohenzoller’s permanent base
1871: Berlin is the Capital of the German Empire
1920’: golden Age of Berlin, after the First World War
1945: It’s divided to four part by the winner allies
1961 -1989: existing of the Berlin Wall
1990: reunification of Germany
1991: Berlin as a Capital of the Reunified Germany
Berlin is made up of 12 boroughs (23 districts), each with its own
unique character
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Berlin’s districts
Frankfurter Allee is
located on the border of
Friedrichshain and
Lichtenberg, but
administratively belongs
to Friedrichshain
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Boroughs
Boroughs
Area (km2)
Population
I.
Mitte
39
321.000
II.
FriedrichshainKreuzberg
20
258.000
III.
Pankow
103
350.000
IV.
CharlottenburgWilmersdorf
65
315.000
V.
Spandau
92
226.000
VI.
Steglitz-Zehlendorf
103
289.000
VII.
Tempelhof-Schöneberg
53
334.000
VIII.
Neukölln
45
306.000
IX.
Treptow-Köpenick
168
235.000
X.
Marzahn-Hellersdorf
62
251.000
XI.
Lichtenberg
52
257.000
XII.
Reinickendorf
89
246.000
total
892
3.388.000
Source: Statistisches Landesamt Berlin, 2005
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The main boroughs of Berlin
 Charlottenburg, a lively part of Berlin
 Outskirts of Kurfürstendamm, dozens of brand new offices, commercial
centres (Zoo)-wilhelmsdorf
 Tiergarten, the ancient royal hunter area, after the reunification this site was
heavily improved (Reichtag)
 Kreuzberg, the place of contrasts, during the 2nd W.W. it was badly damaged
(Viktoria Park, Checkpoint Charlie)
 Unter der Linden, One of the most beautiful part of Berlin, lots of historical
buildings, lively and vivd part of Berlin (PariserPlatz)-Mitte
 To the North from the Center, this area became the Jewish quarter, many
artists and political activists live there
 To the East from the Center, it is the City Centre, the earliest memories of
Berlin can be found there. Excellent area for investment as most people coming
to the city will want to live here (Tv-Tower: 365m high)
 Museumisland, cradle of Berlin’s history, 1950: it was demolished totally
(Berliner Dom)
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Numbers of Berlin -1
 35% of the City area are forests, parks, lakes, rivers and canals.
 2 Zoos and 1 aquarium
 1 chinese, a japenes and 1 balinese garden
 About 200km navigable rivers and canals
 2338 sport establishments
 74 swimming-pools
 1667 playground
 236 grasslands
 5 lakes, 2 rivers
 3 big Operas
 167 museums
 150 theatres
 150 stages
 8 symphony orchestra
Bodemuseum
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Numbers of Berlin – 2
 973 industial factories
 18.117 handicraft mills
 4.170 building trade companies
 128 passenger supplier companies
 9 metro lines 400 million passengers per year
 160 bus services, 28 transportation rail trolley services
 3 airports, 212.885 flights and 12.180.783 passengers
 7 technological parks
 77 researcher centers independant from universities
 One of the main cities for holding conferences in Europe
Source: Berlin-Budapest, Information for business partners 2004
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Creativ and Vibrating City
 Dynamic and Cosmopolitan City
 The city of Berlin is characterised by diverse cultures, mentalities and ways of life.
 Berlin with 3 Universities (4 Universities including Freie University), 2 Clinics, 13
Colleges, with more than 139.000 students, 2 Academies, 250 research institutions
drives innovation.

Humboldt: (Friedrichstrasse) The building was built in 1753, the University was
founded in 1810. I

Freie: (Henry-Ford-Bau Garystrasse 35-39) Theiplatz on the west side. It was
founded in 1948.

University of Arts: (Hardenbergstrasse 32-33), was established in 1696.

University of Tecnics: (June17 Strasse 135)
Altogether 139.000 Students live and study in Berlin
 In 2010 on the area of Berlin-Adlershof Scientic and Economic site come into
existence the most modernised research and technological center in Europe
 Berlin’s workforce is highly qualified and internationally competitive
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The 10 most famous sights
 Pergamonmuseum
 Schloss Charlottenburg
 Arts and Crafts Museum
 Gemáldegalerie
 Saint Mikolaus residental area
The Reichtag
 Zoo
 Tv-Tower
 Brandenburg Gate
 Reichtag
 Temple Memorial
The Tv-Tower
The Brandenburg Gate
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Berlin’s most beautiful historical buildings
 Schloss Charlottenburg
 Schloss Belleuve
 Reichtag
 Brandenburg Gate
 Saint Maria Church
 Arsenal
 Red Mayor’s Office
 Berliner Dome
The Berliner Dome
 The Theatre on the Gendarmenmarkt (One of Berlin’s most beautiful
squares)
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Memories of the Divided City
 The Berlin Wall (155 km long)
 The Soviet Military Monument (For the Red Army’s
prostrated soldiers during the battle of Berlin in 1945)
 The Palace of Tears (the last border in the east side
for the travellers going to the west side)
 Checkpoint Charlie (This border, between the soviet
and the american zone was used by the foreigners and
diplomats. The arrested spies were handed back also
across this checkpoint)
 East Side Gallery (The remains of the Berlin Wall
became an open-air galery, where 118 artists’ murals are on
show)
 Monument of the Air-Bridge (For those, who died
Checkpoint Charlie
during the 1948-49 air-bridge in Berlin)
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Berlin’s most beautiful modern buildings
 Bauhaus – Archiv (Cubist building-1978)
 Kant – Dreieck (with only right angles in it)
 Nors Embassy (Nordische Botschaften 1997-1999)
 Building of the Berliner Philharmonie
(1961)
 Sony Center (ultramodern building for offices and
pleasure-grounds)
 Gemáldegalerie (1998)
 Galeries Lafayette (huge department store with the
feeling of Paris)
 Quarter Schützenstrasse ( In this quarter of the city
Berliner Philharmonie
Aldo Rossi’s works can be found)
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Berlin’s most beautiful Parks and Gardens
Berlin is one of Europe’s greenest capital.
 Schloss Charlottenburg (palace garden, in french baroc style)
 Botanic Garden (was established in1899 -1910, one of the world’s biggest botanic
garden)
 Park Babelsberg (landscape garden)
 Tiergarten (the one-time royal safari park)
 Monbijoupark (The park surrounded the damaged Monbijou Palace during the II.
World War)
 Viktoriapark (the park is on a hill, from which there’s a nice view to Kreutzberg, on
the top there is the monument for the Napoleon’ war)
 Britzer Garten (landscape garden around the Schloss Britz from the 18th century)
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Berlin’s Event Calendar
 January: Running Race of the New Year
 February: International Film Festival
 March: International Tourism Exhibition
 April: Easter Holidays, Festtage – series of concerts and operas
 May: German Women’s Tennis Open, Theatre Festival, Carneval of Culture
 June: Jazz Festival, Christopher Street Day (Festival for gays and lesbics),
International Literature Festival
 July: Love Parade
 August: German-American mass Festival
 September: International Athletic Event, Berlin Marathon, Berlin Festive
Weeks
 October: Anniversary of the Reunification of Berlin, Octoberfest
 November: Jazz Fest Berlin, festival of the Jewish Culture,
 December: Christmas Market
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Berlin and Sport
Berlin is not just an artistic and cultural center but also a center of
sport activities. There are 1,500 sport facilities spread out across the
city. A total of 160 Berlin teams play in the top league.
Annual sports events: Berlin Marathon, ISTAF international track meet,
track cycling competition, German International Woman’s Tennis
Championship.
On 9 June 2006: start of the FIFA World cup in Germany, the biggest
international event held in Germany for years. Billion viewers on all
continents will follow the 64 games in the 12 world cup stadiums on
television.
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Restaurants, Coffee shops, Bars
As Berlin a Cosmopolitan City it’s obvious to find several kinds of
restaurants there. Indians, greek, chinese, thai…
Special Places to Drink
Kneip: beer is offered, but you can eat as well.Typical for Kreuzberg, Moabita,
Prenzlauer Berg, but not in the city centres. Dark place with huge counter
Beergarden: Open-air places, it’s open just in the summertime, it’s usually in a
park or at the riverside. Grillfood is typical.
Pub: Mediteranean feeling. It’s open from early in the morning to the evening.
Italian, spanish and french foods are typicals.
Bar: lots of bars, no food, it’s open from 8 p.m.
Gaybars: (Nollendorfplatz) popular places not just for gays
The area south of Frankfurter Allee has suddenly become the city’s hottest
nightlife zone, with new bars and clubs
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Shopping in Berlin
Berlin’s every district has shopping centres with really good quality of
products.
The most famous places are:
 Kurfürstendamm (Ku’damm)
 Friedrich strasse
 Potsdamer Platz
 Sony Center
And smaller, but nice shops:
 Tiergarten
 Wedding
Potsdamer Platz
 Schöneberg
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Famous Berliners
 Bertolt Brecht (opera author)
 Robert Koch (Scientist, with Nobel award in 1905)
 Marlene Dietrich (Hollywood filmstar started her carrier in Berlin)
 Albert Einstein (Director of the Berlin Physical Institute)
 Grimm Brothers (They are famous for their tales)
 George Wilhelm Friedrich Hegel (On eof the 19th century’s most significant
philosopher)
 Theodore Fontane (One of the 19th century’s most significant novelist)
 Felix Mendelssohn Bartholdy (author of the wedding-march)
 Richard Strauss (composer)
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Tourism in Berlin
 Berlin has several faces from the modern architecture to the recent past’s
historical places
 The museums, castles and gardens attract more than 15 million visitors, the
theatres attract more than 3.5 millon visitors per year
 In Berlin and Brandenburg there are 500 castles and parks. (the most famouses
are: Sanssouci castle in Potsdam, Museumsinsel in Berlin, Kulturforum on the
Potsdamer Platz)
 There are more than 1400 cultural programs in Berlin every day
 Berlin has 133 hotels, 18 pensions, 293 tourist accomodation and 27 layers.
Altogether 75,009 spare beds.
 In 2003 the number of visitors in Berlin Hotels were: 4.952.798. They arrived for
an average 2-3 days.
 Almost all of the hotels can receive disabled people
 Prices from the near of Frankfurter Allee
Apartments for 1person: 44EUR/night
for 2 persons: 59EUR/night
for 3 persons: 69EUR/night
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Construction Projects in Berlin
Examples:
 Spree-Gateway to the future: Berlin’s future media and services district is been
developed along the River Spree.
 The showpiece project: Potsdamer Platz: brand new city district with huge
companies, like DaimlerChrysler, Sony, AT&T
 Prestigious New Construction at Pariser Platz: Banks, Embassies, and the
famous Adlon Hotel
 Former Checkpoint Charlie-Border Crossing Point: with modern office and
residental buildings
 Klingelhöfer Dreieck: (2003) complete city block
 Ku’damm Street: (2000) shopping centers, hotels, offices, retails
 Beisheim Center: (2003) Hotel and luxury apartments
 Lehrter Banhof: (2005) new railway station, the biggest project in Europe
 Berlin-Brandenburg Airport: It will be Germany’s new and biggest airport (2011)
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Berlin in the Middle of the Continent
Berlin as a European Transport Hub
Because Berlin’s region
geographical location makes it
a hub for
 Rail routes
 Motorways
 Waterways
25
Transportation
Berlin has 3 airports
 Tegel Airport, the busiest of all, 8km from the centre, flights from USA and
Europe
 Schönefeld Airport, mostly Asian and European flights, 12km from the
centre to the south, belonged to NDK. Aerlingus fly in here.
 Tempelhof Airport, the oldest, the least busy, near to the centre, border of
Kreuzberg and Tempelhof
 The next big development is to expand the Schönefeld Airport to the Berlin Brandenburg International Airport by 2011.
 Lehrter Bahnhof and Haupbanhof (stations) are just 17 minutes away
 The plains will take off in 24 hours a day. Capacity: 23-30 million
people.
 Excellent road and rail connections: The airport has its own motorway
junction, and the AirportExpress, S-Bahn, Interregio, IC and ICE station is
directly under the terminal.
 Two parallel runways, a centrally situated terminal, air traffic is moved
away from the city centre to the outskirts in order to avoid and reduce
noise.
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Transportation - 2
Other important Airports in Germany
 Frankfurt Airport
 Hamburg Airport
 Munich Airport
Integrated Freight Transport Concept
With the growth of Berlin-Brandenburg as an industrial region, freight traffic is
also increasing.
Each year 26 million tonnes are transported into the region by road alone. Within
the city limits, another 45 million tonnes are distributed by lorry and small vans.
That’s why the goal is an integrated freights transport concept.



To avoid lorries making trips without making use of their full load capacities
Three freights transport centres on the periphery of Berlin serving as
logisticcentres between local and long distance transport
Transportation of more freights to Berlin by rail or waterway
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Transportation - 3

Reliable railway networks
Berlin is the railway city of the XXI. century. The next project of the City is the
Lehrter Bahnhof downtown railway station, which will be the cross-point of the big
European railways. They count with 250.000 passengers and 750 trains per day.

S-Bahn, U-Bahn, is the fastest way of transportation
U-Bahn
S-Bahn
Knit network
Not so knit network
Lots of stations
Fewer stations
A train goes every 1-2 minutes
A train goes every 10-20 minutes
10 lines, altogether 143 km
15 lines, altogether 320km




International coaches, the cheapest way of transportation
Doubledeckers, 250 are already in service
Sea-way, 200km
Motorway, in high quality
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Flights to Berlin
Aer Lingus Flights from Dublin arriving at Scöhenfeld Airport

27th March-28th October: Mo, We, Fr, Su

28th May-29th October: Sa

26th july-27th October: Tu, Th
Other flights from Dublin to Berlin, with a stop over in London

Alitalia Airlines

Lufthansa

Air France

Air Baltic

KLM

Ryan Air
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Friedrichsain-Kreuzberg
The Friedrichshain-Kreuzberg district has extensive late 19th century period
architecture and urban mixed used in apartment buildings, shops, bars,…
There is excellent public transport connections, leisure facilities in Volkspark,
and resting facilities in the historic Viktoriapark.
There are the combination of very attractive, renovated buildings and
interesting residental blocks from the 1850s to the 1980s.
Berlin’s smallest district, with a poulation around 258,000 from which 22,4% are
foreigner. Friedrichshain-Kreuzberg is the most densely populated district in
Berlin. The average monthly income is around 1,225 EUR.
The Age distribution:

Under 6: 5,8%

6 to 14: 7,4%

15 to 64: 76,9%

65 and above: 9,8%
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Business Developments in Friedrichshain

There are 36 registered hotels, providing 4,960 beds in all.

Comeniushof – Newly constructed commercial complex

Alte Pianofabrik – modernised 5-storey factory building

EnergieForum

Postreal am Ostbanhof –project to develop a new urban quarter

Spreesinus- architectually interesting buildings

Spreeurban- construction project for an urban quarter with shops, restaurants,
offices, hotels, apartments (completion date: 2005)

Victoriaspeicher-project to develop the former granary

MTV has an office around Frankfurter Allee

Alexanderplatz is planned to go through a massive investment and upgrading

Arena Complex

Around 15,000 new apartments by 2010 by foreigner consortium
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Frankfurter Allee
Frankfurter Allee is situated in the New-Center Mitte, which is one of the busiest part of the City.
Frankfurter Allee is the continuation of Karl-Marx-Allee. It was built in 1951- 1960. The principal
avenue is monumental. The avenue is 90 metres wide, with spacious grassy borders and tree-lined
paths, and extends 2,3 km long, bordered by 7-to 9-storey-high housing blocks.
The building was built in 1953, in antic style. Today it is qualified as an art relic building. It
contains 399 flats - including 3 penthouse flats - and 32 shops in the groundfloor. The buildings
around us are made up from apartments, banks, restaurants, and plenty of them are also for sale on
a bargain price. The building will be renovated in its original style. The building is located closed to
the city centre and the TV-Tower, it’s just 10 minutes in the metro. The nearest Metro station is 20
meters. You can reach it with S-bahn (S41,S42,S8,S85), Tram (16, M13) and bus also.
Alexanderplatz is 5 minutes from there
The proportion of the rented flats is 100%. Berlin is quite a busy city with couple of Universities,
foreigners living there and Friedrichshain, is a real key area to rent and buy in Berlin. Our renters in
Frankfurter Allee are all there since 1953.
The rental yields on the apartments around: 4-5%
Hotel Adlon with its pleasant and intimate rooms(120) is nearby. You can go for shoppingtour to the
close Frankfurter Allee Plaza. Frankfurter Tor, is famous for its tall corner towers is bordering the
avenue. Strausberger Platz, one of the most beutiful squares in Berlin is also in the neighbourhood.
32
About Frankfurter Allee
A very special street in the heart of Berlin
„In Berlin there are 13.684 public streets. Karl-Marx-Allee / Frankfurter Allee is
definitely one of the most interesting streets of Berlin from many aspects.
Its location in the centre of Berlin, the history of its origin, but first of all its urbanbuilding, architectonic appearance make it a significant witness of the city history and
architectonic development of the 20th century in our city. It was always in the central
interest of the public, much more than Berlin. Even the change of the original name
of „Stalinallee” to Karl-Marx-Allee / Frankfurter Allee demonstrates the chequered
history of Berlin.
Everything started in 1951 shortly after the foundation of the two German states with
a competition to „… establish „Stalinallee” in Berlin from the point of view of urbanbuilding and architectonic. The still open border across Berlin in the middle of the city
divided the former capital not only to East and West but it was already a dividing line
between the two political systems. The cold war started and in East and West there
were already different ideas about the rebuilding of the ruined city Berlin.
33
About Frankfurter Allee
In Western sectors of the city solutions of modern ideas and concepts were preferred.
Within the frame of the international building exhibition the „Hansa quarter” was erected
in this way in the style of strict functionalism, almost simultaneously with the Stalinallee
in the Eastern part. After hesitation at the beginning the architects of East Berlin
orientated more or less on basis of the direct influence of the political line to the
examples of the Soviet Union, which preferred the architecture drawing on the history.
Kurt Liebknecht, president of the „Building Academy of GDR” at that time spoke about
the creation of an „architecture of national tradition”. This should have been the model
of the new character of the „socialist cities”, the new „Stalinallee” became its first and
most magnificent example.
However, at first the result of the competition was not satisfactory. That is why
subsequently the five prizewinners and the architect Herrmann Henselmann originally
not participating in the competition developed an urban-building plan after many
protections, which complied with the ideas of the political leaders. Despite these serious
labour-pains the ensemble of the street from urban-building aspect was established in
the next years. The participating six architects planned here buildings, which developed
their special character by „borrowing” the style elements of historic architectural epochs.
34
About Frankfurter Allee
Spectacular, ground floor covered by rubble, decorating elements, window frames
shaped like attached columns and façade proportions in all determine the
appearance of the buildings, which have to remind of the classical building tradition
of Berlin. The result was intensively criticized in the West, the word „flashy
architecture” became an expression, despite the fact that the modern solution
proposals of urban-building were disputed. The „Stalinallee” polarized already at
that time, as well. Despite all critics of the spirit of the age, the buildings of the
„Stalinallee” are indisputably particular houses. Consequently the impressive
building ensemble was put under preservation order already some years ago. The
houses show even today an individual charm and win the admirer by their
special qualities. Entrances and staircases are e.g. dimensioned so generously
and expensively that even compared to the residential buildings of today they offer
much „more” quality for stay. In consideration that the buildings in the „Stalinallee”
were always demonstration objects, the apartments are in those buildings
remarkably larger than the usual standard in East and West at that time. Solutions
of ground plans have such a high quality that they perfectly comply with the more
exquisitely housing requirements of nowadays.
35
About Frankfurter Allee
The aesthetic quality of the former „Stalinallee” is still discussed intensely and
controversially. One thing remains indisputable: A more concise witness of the urbanplanning and architectural discussions of that time - featured by ideological disputes
and political influence - is hardly conceivable. One of the most significant architects of
the second half of the 20th century, the American Philip Johnson wrote at the beginning
of the 90s: the Stallinalle – „a magnificent Champs Elysées. It was a big task, to give
this place such proud character, to address people in the deep of their heart. In my
opinion the Stalinallee is still such a street, which awards a city, a place by which a city
remains in the remembrance of its visitors.” ”
by:
Kay Wieland
Dipl.-Ing. Architekt
Berlin, 30.08.2005
36
Berlin Strategically
 Belin is a by-pass element between Eastern and Western Europe
 Berlin is located on the east-west axle between Moscow and London
and on the north-south axle between Stockholm and Rome
 Berlin is the political and economic center of Germany
 For the middle and eastern European entrepreneurs, Berlin is the
gateway to the western market
 More and more international and German firms and banks have opened
subsidiaries in Berlin in order to reach the central - and eastern markets
 Many Eastern - and Central European companies have choosen Berlin
for its location
 More than 400 exhibitions and trade shows are held yearly
37
Berlin Strategically - 2
 On the turn of the millenium more than 200 leading economic
confederacies were present and operated in the City.
 278 companies moved to Berlin between 2001 and 2004. (this
resulted 11,000 new jobs and invest in 700 million Euros)
The sudden rise in growth is favoured by:

A unique environment of science and research

Efficient communication network

Competence in information and communication technology

Affordable industry and office space

Direct access to markets in central and eastern Europe
38
Economic Conditions in Germany
 Germany alone produces nearly a quarter of the entire GDP in
Europe
 Largest population in Europe (around 83 million people)
 Key financial Empire
 Germany has the most advanced telecommunications system in
the world
 European leader in High-Tec
 Largest e-commerce market in Europe (over 27%!)
 Highly developed transportation
 One of the wealthiest countries in the world
39
Economic Conditions in Germany - 2
Germany's economy is the world's third-biggest and one of its most advanced.
As the economic heart of Europe, its performance has far-reaching effects outside
Germany, particularly in other EU countries and in Central and Eastern Europe.
The service sector dominates Berlin’s economic landscape. Together with finance
and rent, it accounts for almost 66% of the total value added in Berlin.
Sctructural Change in the Economy

At present, more than 80% in every Euro are contributed by service entreprises.

The real estate, rental and corporate services markets have boomed, increasing
their shares of Berlin’s overall gross value added by 5,3% in a decade

The finance, rental and corporate services generate more than a third (35,7%) of
Berlin’s total economic output.
 New jobs have primarily been created in real estate, rental and corporate
services, pointing these sectors’ growing importance
Source: http://www.blc.berlin.de
40
GDP
Gross domestic product and gross value added in Berlin
(by sector) (Numbers in Million EUR)
2000
2001
2002
2003
2004
Gross Domestic Product
76.566
76.673
76.992
76.823
77.858
Gross value production in all economic sectors
71.109
71.151
71.619
71.429
72.640
126
120
108
90
92
10.542
10.083
10.141
10.132
10.387
3.549
2.992
2.845
2.434
2.258
Service sectors
56.892
2.992
2.845
2.434
59.904
Trade; hospitality industry; traffic and transport
10.819
11.174
11.208
11.342
11.667
Financing, leasing and commercial services
24.310
24.723
24.820
25.278
25.236
Other public and private services
21.764
22.059
22.479
22.153
22.001
Agriculture; fisheries
Production industries excluding building trades
BuPreliminary ResultsVorläufige Ergebnisse des Arbeitskreises
"Volkswirtschaftliche Gesamtrechnungen der Länder"ilding trades
Source: http://www.blc.berlin.de
41
Real Estate Market in Germany
The German housing market has started seeing some movement again in recent
years, with foreign investors showing interest in big German residental portfolios. The
boom started at the end of 2000.
At the present there are around 39,4 million housing units in Germany, which is the
largest residental property market in Europe. More than half of this is rented property.
In Germany currently standing at 43%. In France around 57%, in the UK around 66%,
in Norway and Spain fully 85%.
The housing stock in Germany is comparatively new. More than 70% of the units were
built after World War II., 15% of all the units before 1918 (pre-Weimar Republic) and
the rest was built between 1918-1945.
According to the architecture of the City, there are 3 major sections:

The Old West: the share of old blocks at around 25% (Charlottenburg Castle,
Tiergarten, Kultuforum)

New Centre-Mitte: the share of old blocks at around 25% (Tv-Tower, Karl-Marx
Allee - Frankfurter Allee, Checkpoint Charlie)

The Government District: (Diplomatic Missions, Embassies, Headquarters)
42
Annex
43
Real Estate Market in Germany - 2
The low level of home ownership in Germany is partly the result of the situation after
the World War II.. Social housing concentrated on the construction of rented property.
There are more apartment blocks and relatively few one- and two-family homes in
Germany.
In the past few decades rents for new and old apartments differed all the time. In the
80s, 90s rents for new and old apartments differed by around 1/3. The factors driving
this were:

The quality of existing property has been upgraded

Holders of housing stock have improved their tenant management

Competition for tenants has depressed newbuild rents
Nowadays the rents for new apartments are barely higher than for existing
properties.
Average rents for newbuillds (in 2004) from 5Eur/m2-11,2Eur/m2
44
Why to Invest in Real Estate?
 Huge population. 80 Million people in Germany with 3,4 million in Berlin.
 Germany is the most powerful member of the EU, Germany has international reputation
for innovation, high productivity
 Analysts believe that the economy is on its way up
 The political system gives reliable conditions and long term security for investment
projects
 Socially-minded state (nursuring, old-age care, financial assistance for parents),
Political and economic centre of Germany
 Tax policy will encourage investment and increase Germany’s competitive strength in a
global economy
 Our building on the Frankfurter Allee listed of the 100 most important buildings in Berlin
 The supply increased on the market of cheap residental, industrial and office buildings
 Attractive subdivisions and favourable prices than anywhere in Europe
 There are lots of students and foreigners living in the City without own flats
45
Why Germany’s housing portfolios are
interesting?
 Stable property markets – most other European markets have already peaked
or are close to their zenith. The German market is fluctuating very little
 The number of newbuilds is close to a historic low
 A shortage of apartments is expected
 Demand forecast to exceed supply in Berlin over the next few years
 Which can resulting in both rising rents and prices
 Interest rates are still very low
 Exchange rate trend (further depreciaton of the US dollar)
46
Buying property in Berlin
Costs accompanying buying property
A lawyer/solicitor or notary is required to carry out the legal work and checking that no
liabilities exist. A public notary has to be used for the conveyance all real estates contracts.
In Germany the buyer has to carry the following costs:
1)
Purchase Tax: 3,5% of the buying price. Due about four weeks after the
deed has been signed by buyer and seller
2)
Notary fees: 1,2-1,5%, of the buying price
3)
Agent fee: In most federal countries it is 5% plus the VAT
4)
Registration fee: it’s add up to about 0,8-1,2%
notary
German Real Estate financing can be done either with mortgage banks or with any usual
bank or financing institute (Sparkasse, Volksbank, Insurance Company, Bausparkasse).
Financing usually is done for 60-70% of the buying price by mortgage loan.
Anything above that up to 100% of the buying price needs to be secured either by
additional securities like insurance or other financial securities that have to be depositied at
the financial bank.
47
Money going to Berlin
 George Soros

Recently Bidding on 2 billion EUR worth of Berlin Property.
 Goldman Sachs’ Whitehall Funds

2.1 billion EUR purchase of 65,000 properties sold by the City of
Berlin in May 2005.
 Terra Firma

Recently paid 7 billion EUR for Viterra, a portfolio of 150,000 homes
in Germany.
 Fortress

Recently Paid 3.5 billon EUR for Gagfah, a state owned housing
portfolio.
 Also Investing Heavily in Berlin Property




New York's Cerberus Group
Blackstone Group
Morgan Stanley
Babcock & Brown
48