Press Articles |
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The Irresistible Rise of Berlin First published in European Businessman Winter Edition 1997-1998. Berlin, once the capital of a powerful Germany, is emerging again, especially for property entrepreneurs. However, property prices have not risen as some predicted, and in some areas, needles and other drug-related paraphernalia litter the streets. I remember visiting the City in 1979 and there was a magical feeling about the place - almost like the television programme, Secret Army. A wonderful, almost surreal existence engulfed the people who lived in the western section. If you walk to the west of the Kreuzberg district, you will see evidence of an attempt to gentrify the area. Still home too many drop-outs and activists, there is also a large population of Turks living in the area. Turks (known as Gastarbeiter or guest workers) were encouraged to settle in West Berlin by the government of the time as a replacement for the thousands of workers from the East who were lost when the wall was erected. Entirely neglected during the Cold War, this area is ripe for further regeneration. Streets and boulevards, which became dilapidated under Communist rule, are regaining their former elegance and appeal. Areas like East Berlin's magnificent Platz der Akademie are evolving to rival any in Europe. Office rents in areas such as Mitte, which was the old centre of East Berlin, are now in the DM45 per square-metre bracket, with one case of DM58 per square-metre being achieved. Mitte is now considered the most sought-after office location in Berlin by many agents and developers. Retail investment is buoyant throughout the city, particularly in the east. Most new shopping malls are fully let long before they are ready for occupation. "Most investment in East Berlin is tax-driven with banks and financial institutions setting up closed funds into which private individuals place money which is treated advantageously tax-wise" says Andrew Cruickshank of Weatherall Green and Smith's Berlin office. One thing that surprises many people is the fact that there are only four flights per day from the UK to Berlin - three from Heathrow and one from Manchester. Quite why this should be so, when you consider Berlin has a population of over 3.5 million and is emerging as the German capital, is baffling. As Andrew Cruickshank says "We are still waiting for the big boys to arrive. Most property deals are still taking place between German companies. International groups are not yet choosing Berlin as an HQ base." Residential housing in the city is the usual mix of apartments and houses. However, one area which really stands out is the Grunewald which when translated into English means green forest. This is the area where politicians, celebrities and other wealthy people live - probably the equivalent of London's St John's Wood. It is filled with large houses and expensive apartments with DM10,000 per square-metre being achieved for a decent family home. Although Berlin has found it difficult to attract foreign investment, it is worth remembering that the city has a higher GNP than Greece, Portugal or Ireland. And within two-and-a-half years of unification, over 480 companies have established offices within the city - many of them looking for development opportunities. While most Berliners will remember 9 November, 1989, as the most significant date in the city's history, others consider it to have started a nightmare race for riches which may not be forthcoming. Areas such as the old town of Alstadt are undergoing extensive restoration and its dilapidated streets dating from the 13th Century retain an antique ambience and are well worth exploring. Alexanderplatz, which was inhabited by the city's working class during the 19th Century, is waiting to be revamped - hopefully by architects who will recognise the need to return the old market place to its former glory. At present, it is a bleak open space which is desperate for development. Compared to the boredom of Alexanderplatz, the Ku'damm is an oasis. This is Berlin's principal shopping street, stretching for over 3 kms towards Charlottenburg - a major beneficiary of the Wirtschaftswunder (economic miracle) of 1965; it retains a feel-good factor mainly created by American investment. What the city needs now from its property developers, architects and planners is vision. The vision to see how magnificent, if overblown, buildings such as the cathedral can be blended with modern, bustling Berlin. When architect Julius Raschdorff built the Berlinerdome over the site of a smaller imperial chapel, he was carrying out his clients' instructions. Let's hope that when out modern crop of architects are instructed to design a new project, they will not see the need to destroy existing historic architecture in the process. How monetary union and a more integrated market will affect inward investment to Berlin will be left for time to tell. Although integration has taken longer to digest than we all thought, many believe Berlin will succeed and once again become one of Europe's most desirable and after locations." |
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