INFORMATION FOR INVESTORS BERLIN REGION WELCOME TO THE NEW CAPITAL
FOREWORD COMPETITIVE METROPOLISES FACING GLOBAL CHALLENGES ON LOCAL LEVEL Above all European metropolitan areas are facing globalisation in form of a dynamical growth of the service sector: the so called process of tertiarisation. Whereas industrial production units tend to move from Central Europe to Eastern Europe and Asia, the service sector is regarded as the future driving force in Europe s economy. CHANGING ECONOMY - CHANGING CITIES For the cities this process implies a radical structural change with dramatic consequences in many different fields: new demands concerning location of enterprises, town planning, employment ranges, qualification levels, infrastructure, housing or administrative cooperation with companies and investors. Moreover international acting companies are not bounded to a specific national location in particular. Cities and metropolitan areas around the world are competing with each other. FOCUSING ON EUROPE - THE COMET PROJECT (Competitive Metropolises. Economic Transformation, Labour Market and Competition in European Agglomerations) Realising the COMET-Project, the European Union tries to frame the complex process standing behind globalisation and wants to give an answer what it means to different European metropolitan regions. In order to meet the different demands of its broad audience (research, administration, planning, investors) the COMET-Project and all its results of research are documented in various publications. The degree of structural service diversification in inner cities and suburban areas in Amsterdam, Barcelona, Berlin, Brussels, Copenhagen, Strasbourg and Vienna during the last decade were analysed within the project. Finally, an individual combination of so called soft location factors (e.g. quality of life, housing situation, safety or image) and hard location factors (e.g. availability of qualified workforce, infrastructure or real-estate market) is the crucial point in a companys decision to settle down in a certain place. Thus every city has to establish itself as a prime location with many unique sellings points in international competition.
BERLIN REGION POPULATION AND AREA These maps show the borders of Berlin region as a coherent economic unit as it was identified using a scientific delimination method. Data Source: State Statistical Offi ce of Berlin, 2001; Brandenburg State Offi ce of Data Processing and Statistics, 2001 Method: N.U.R.E.C. Authors: Bachmann, M. Date 2004 11 17 Cartography: Stein, D., Enichlmair, C. ary : Residents (2000) Area (ha, 2001) 3.382.169 89.171 736.345 8.688 Rest of core city 2.645.824 80.483 Suburban area 552.261 113.600 COMET agglomeration total 3.934.430 202.771
EUROPEAN METROPOLIS In the last years, Berlin, capital and largest city of Germany, became a fascinating and attracting place for everyone. Numerous cultural events and institutions, a vivid Off-scene, affordable space to live, multicultural atmosphere and lifestlye and last but not least Berlin s efforts to become one of the leading office and high technology locations in Europe make the city to a real international metropolis. Aside from the newly built governmental district and the pulsating Potsdamer Platz, there are many sub-centres with a unique atmosphere.
A comparison of Berlin with the other metropolises shows that especially the key branches Real Estate, Technical and Engineering Services, and Culture and Entertainment are well above average, whereas there are fewer enterprises particularly in the key branches of Finance and Insurances, Telecommunications, Computer and EDP as well as Consulting Services. This pattern is still a result of the decelerated development caused by the partition of Berlin before 1989. The key branch Predominantly Blue-Collar Business Services diverges from the average and typical spatial distribution in the different zones. In the case of Berlin, this branch is more pronounced in the inner city than in the outer zones. An explanation for this distribution could be the large supply of lowpriced offices in the inner city. Also the key branch Culture and Entertainment is well above average in the inner city. One reason is Berlin s status as a cultural metropolis, another being the twin offer of culture in both the former city centres in the west and the east parts of the city (several operas, theatres, concert halls etc.). Especially the Real Estate branch is strongly represented in the rest of the core city (zone 2). The sample for the conducted enquiry of enterprises based on stratified random sampling. That means that the number of interviews depended on the total number of enterprises in the key branches in every spatial zone.
Employment in the Service Sector 2001 THE INCREASE OF OFFICE SPACE Since 1990 about 7 million square metres of new office space were built in Berlin. Currently Berlin has about 18 million square metres of office space. The city thus has the most important offer of office space in Germany and ranks third in Europe compared to Paris (31.5 million) and London (27 million). Due to forecasts there is still a high demand for office space - 4.5 million square metres until 2010. Employment opportunities related to companies in the office service sector will increase by 80.000 during the same period. Almost 60% of these new office buildings should be located in the inner city. For the time being there are enough attractive sites in the central parts of Berlin at least until 2015. This is a quite unique situation in Germany and in Europe as well. SOURCE: COMET databases AUTHOR: M.Paal & A.Pöckl CARTOGRAPHY: E.Hagspiel, C. Enichlmair Data Provider: Business Register, State Offi ce of Berlin, 2001; Institute for Labour Market & Occupational Research (IAB), 2001 In the Brandenburg (the surrounding federal state) communities the office space market developed on a very low scale whereas logistic firms - due to low property rates performed dynamically.
Employment in Retail Trade 2001 THE POLYCENTRIC STRUCTURE In contrast to the other COMET-cities Berlin has a polycentric structure with two main commercial centres (Western centre and Eastern centre) and several district centres. The new centre Potsdamer Platz, which is rebuilt after reunification of Berlin and Germany, is linking both centres of the inner city of Berlin. In the Eastern part of the city - after reunification - there was a high demand for shopping space. Since 1990 1.5 million square metres of new shopping facilities malls and shopping centres - have been built in Berlin. There are now about 3.8 million square metres altogether. Nevertheless, the demand for shopping space is still high. SOURCE: COMET databases AUTHOR: M.Paal & A.Pöckl CARTOGRAPHY: E.Hagspiel, C. Enichlmair Data Provider: Business Register, State Offi ce of Berlin, 2001; Institute for Labour Market & Occupational Research (IAB), 2001
BERLIN ADLERSHOF - WORLD OF SCIENCE AND ENTERPRISE Thematical/Functional Areas of the Development Site Berlin-Areal Companies or Scientific Facilities (in total) Employees (approx. numbers, in total) Size (ha) City of Science: Non-university research institutes 12 1,500 City of Science: Technology-orientated companies and attached service sector companies 365 3,300 105 City of Science: Humboldt-University with Departments of Mathematics and Natural Science and an information and communication centre 6 730 Media City: Film- and television productions as well as services for post-production in the fields of cutting and copying, synchronisation, animation and image processing, media work shops 115 950 25 Industrial Park: Companies in the service, trade and industry sectors 165 4,200 45 TOTAL 663 10,380 175 Source: Adlershof Projekt GmbH, information from Adlershof Facts and Figures June 2004 (21.06.2004) : www.adlershof.de
STAFFING TRENDS Based on the conducted enquiry of enterprises the inner city shows the highest mean percentage increase per enterprise during the last three years in Berlin. There is a clear difference to the average development of all COMET cities, because on average the highest mean percentage increase per enterprise can be observed in the rest of the core city and the suburban belt. The same applies to the absolute number of staff in Berlin: the strongest increase of staff and also of the balance of staff (saldo) happened in the inner city. This low staffing trend in the suburban zone of Berlin could be an indicator for the relatively small dynamic process of suburbanisation. A look at specific branches shows that especially the two branches R & D and Real Estate have a disproportionatly high percentage increase per enterprise, whereas compared with the average of all cities the Blue Collar Services are rather low in the Berlin case study. The balance (saldo) of the absolute number of staff is high in the following branches: Telecommunications, Computer and EDP, Culture & Entertainment as well as R& D.
IMPRESSUM COMET (EVK4-CT2001-00050) - An EU-project in the 5th Framework Programme under the Key Action City of Tomorrow and Cultural Heritage, co-ordinated by the Institute for Urban and Regional Research of the Austrian Academy of Sciences, Postgasse 7/4/2, A-1010 Vienna. Supported by the Austrian Federal Ministry of Education, Science and Culture. Diagrams by: Marie Bachmann, Free University Berlin Photos by: Hielscher & Friends Werbeagentur GmbH, Land Berlin/Thie, Partner für Berlin/FTB Werbefotografie, WISTA GmbH Design: Peter Johannes Görgl http://www.comet.ac.at