Berlin's Residential Property Market Benefits from Start-ups and from the Sound Economic Situation
According to the Berlin-Brandenburg Statistics Office, Berlin's gross domestic product grew by three percent in 2015. This put Berlin right behind Baden-Württemberg, the state with the fastest growing economy at 3.1 percent, and far above the German average of 1.7 percent. An important role for the persistent economic upswing in Germany's first city is played by the burgeoning start-up scene. Berlin's business climate, which is defined by digital innovation, is attracting an increasing number of start-up entrepreneurs, particularly from the IT and high-tech industry. Against this background, more and more career starters are attracted to the city. According to Berlin Partner, the city's business and technology development sponsor, the number of new businesses with a technology focus that were started in Berlin rose by around 60 percent to a total of 99 companies in 2015 – compared to a mere 58 technology start-ups the previous year.
All things considered, more than 13,000 people are employed by over 600 start-ups in Berlin. This makes the industry one of the biggest source of employment in the city even now, and puts it in fifth rank, just behind the public transport services and ahead of Siemens.
Rising Demand on Berlin's Residential Property Market
Meanwhile, the city's market for residential real estate benefits from the increased inflow of companies to Berlin and the associated demographic growth.
The number of condominium sales has gone up apace with the growing number of well-to-do residents and high-net-worth investors. According to the Accentro Homeownership Report 2015, the German capital easily took the national lead again with 19,019 flats sold. Neither does the revenue generated by Berlin's housing market need to fear comparison with other German cities as it totalled c. 3.7 billion euros and therefore barely lagged behind Munich with its total of c. 4 billion euros, according to the Accentro Homeownership Report 2015. After all, the elevated demand is also driving up residential rents and prices.
On the Upswing, with Bright Outlook
The robust economic development in Berlin will continue through the remainder of this year, according to industry experts and the competent senate administration. Indeed, the Senate Administration for Economy, Technology and Research expects to see a growth of 2.5 percent in 2016. The continued robust performance of the city's economy is boosted by impulses from the growth industries favoured by young start-up companies. It is not least due to these, according to the city's senate administration, that the economic forecast for 2016 will be met, which will cause Berlin's growth rate to exceed the national average for the third time in as many years.