Why Brexit drives British companies to Berlin?
Brexit drives more and more companies to move to Berlin, according to Stefan Franzke, director of Berlin Partner for Business and Technology, an organization that helps foreign businesses to establish themselves in Berlin.
Due to Brexit, not only UK companies are interested in Berlin, but also American and Asian companies are looking at Berlin, as they previously went for all their business in Europe through London, but now this is not working for them anymore, so, therefore, Berlin has become important to them.
More and more people are coming to Berlin and making the city a central location for future technologies. Renowned companies such as Amazon, Fujitsu, Google, Mercedes-Benz, Microsoft, Sanofi and Pfizer already discovered Berlin for their business.
This only means, that Berlin will attract more and more new inhabitants, which will lead to more demand for commercial and residential real estate, which means prices will continue to grow. Berlin is now compared to London and Paris, however, the average square meter price is still below the London and Paris prices.
What makes Berlin attractive for foreign companies?
Berlin economy has been flourishing for years, employment rates are growing faster than the nationwide average. This, in combination with high quality of life and low cost of living, attracts a lot of skilled talent from all over the world.
With its internationally renowned universalities and research centers, Berlin is one of the largest centers for science in Europe.
Berlin has a fast-growing startup scene and a successful infrastructure for financing and funding. With numerous incubators, accelerators and co-working spaces, the city provides optimal conditions for entrepreneurs from around the world.
The cost of living in Berlin is still low compared to other main European cities, so are the rents, therefore companies that establish themselves here can have less running costs.
Berlin boasts a high quality of life, and many who move to Berlin from London admire the difference it quality of life. According to Eurostat numbers from 2016, 91 % of Berlin citizens feel positive about the city, especially its architecture, green spaces and cultural institutions. Berlin does not have one city center, so there is no one stream of people trying to reach one area, so it does not feel crowded during rush hour. Berlin has a developed infrastructure, good public transport system and developed bicycle routes, so it's very comfortable for Berliners to cycle to work. The city is diverse and offers numerous possibilities for recreation and entertainment.
So what does this mean for Berlin Real Estate Market?
These indicators all point out to the flourishing Berlin market. The great lifestyle, the influx of companies that provide a higher level of jobs and have a positive influence on salaries, migration of talented professionals, population growth and the international vibes of the city, are just a few of many that form the foundation for an upwards trend in the real estate market.
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Jonathan Vandamme
Real Estate Consultant - Berlin, Germany
+49 176 23 22 69 47
office@jonathanvandamme.com
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