A lot of this has to do with Berlin's history. When the wall was still standing, west Berlin wasn't the most desirable place to live in Western Germany, it being basically an island in the communist east. So while cities in the West grew wealthy with industry Berlin was always the special case, not exactly a place for major industry to take root. It also became a haven for artists, musicians, intellectuals, homosexuals, anarchists, and other people not willing to take part in the mandatory military service that was required when you lived in the West (Berlin residents were exempt).
Real estate-wise Berlin has (or at least had until recently) a surplus of vacancies: both apartments and commercial buildings. This is partly due to fluctuations in population throughout its history, and steep declines in manufacturing and population during the wall years from their pre-WW2 heights. There were also huge swaths of prime central real estate throughout the city where the wall once stood, that was unusable until it came down.
What you end up with is a city that was originally planned and built for more people than live there, with vacant factories, warehouses, and office buildings from yesteryear that are readily and cheaply repurposed.
Berlin's population is growing these days though, and internationals, people from other parts of Europe, and other parts of Germany are flocking to the city. This means rent prices are on the rise, and vacancy is dropping. It's still way cheaper than any other major European city — for now.
Real estate-wise Berlin has (or at least had until recently) a surplus of vacancies: both apartments and commercial buildings. This is partly due to fluctuations in population throughout its history, and steep declines in manufacturing and population during the wall years from their pre-WW2 heights. There were also huge swaths of prime central real estate throughout the city where the wall once stood, that was unusable until it came down.
What you end up with is a city that was originally planned and built for more people than live there, with vacant factories, warehouses, and office buildings from yesteryear that are readily and cheaply repurposed.
Berlin's population is growing these days though, and internationals, people from other parts of Europe, and other parts of Germany are flocking to the city. This means rent prices are on the rise, and vacancy is dropping. It's still way cheaper than any other major European city — for now.