Affordable, buzzing, open and tolerant, it’s no wonder Germany’s largest city has taken the crown from London, says Mark Frary
April 14 2018, 12:01am
Why come to Berlin? Silly question. In the past decade, as London has become ruinously expensive and divided over Brexit, the German capital has claimed the crown of Europe’s coolest city.
Proof of this, if needed, was provided in 2016, when a Berlin court ruled that the nightclub, Berghain, produces work of cultural significance and should be allowed to pay tax at the same rates as theatres and concert halls.
But Berlin’s status has not been cemented overnight. It has an astonishing cultural history, which takes in everything from the Bauhaus school of art to Iggy Pop and David Bowie, both of whom called the city home in the 1970s. It a centre of modern art and film. It has a thriving food scene. And it is home to people from all over the world.
The city has long drawn young creatives who are attracted by the reasonable cost of living – but it is now drawing families, too. Apartment rent is typically about €788 (£686) a month and the average commute is a mere 23 minutes on excellent public transport.
Morganne Graves, a Berlin-based innovation consultant, says that her hometown is the sort of place where you can go to all-night parties, attend a screening of an arthouse film, share a ride in an electric vehicle and join in an anti-Trump demonstration allwithin 24 hours, if you have the energy. Berlin has also become a magnet for businesses, particularly those in scientific, pharmaceutical, media and tech fields. The city’s mayor, Michael Müller, believes that his city’s appeal “to artists, to scientists, to researchers” is that it is “open and tolerant”.
For businesses, one of the great draws of Berlin is the cost. Office space is about €18 per square metre a month – a fraction of cities like London and San Francisco and is a reason Berlin has the most start-ups in Europe outside of London.
The other great appeal for companies is the existing ecosystem. As well as being Germany’s political and cultural capital, Berlin hosts one of the highest densities of scientific research institutions in Europe. It is Germany’s biggest city for media and tech – and its economy has been growing faster than the country as a whole for more than a decade.
Yet Berlin does not have everything. Frankfurt is Germany’s financial hub and Munich remains top dog for the insurance and automotive industries.
This may well be for the best. Many Berliners now view over-centralised London as a place consumed by its own success, rather than a city to emulate. In 2016, the city’s finance chief, Matthias Kollatz-Ahnen, told the FT: “We want Berlin to remain a place where average earners can afford to live. And rumour has it that that’s no longer the case in London.”
Businesses agree. In 2017, the technology fund Samsung Next Europe chose Berlin for its European HQ. The reason? According to Felix Petersen, the managing director, “London… is not a fun place to live unless you are really rich. In Berlin, you can do stuff without much money.”
